Binance now won’t be able to operate in the UK anymore shortly after both Japan and China decided to ban the crypto trading platform, according to the Financial Conduct Authority or (FCA).
This was just a day after the Japan financial regulator decided to make a similar decision.
FCA Stops Binance
Citing the very requirements noted, the FCA noted that Binance Markets Limited won’t be allowed to undertake any regulated activities without getting prior written approval, according to an article by Coindesk.
The FCA noted that it looks like Binance is offering certain UK customers products and services through Binance.com.
According to the FCA post, it was noted that Binance Markets Limited is officially “not permitted” to be able to undertake any particular regulated activity in the UK.
The firm is reportedly a part of a wider group known as the (Binance Group). Due to the official imposition of certain requirements by the FCA, it was noted that Binance Markets Limited, as of the moment, isn’t permitted to undertake any form of regulated activities without having a “written consent” from the FCA.
FCA Limitations on Cryptocurrency
It was also stated that no other entity coming from Binance Group currently holds any particular form of UK authorization, license to conduct authority, or registration.
The post by the FCA then warned the public of certain adverts online and on social media that are promising the public high returns on certain investments that are categorized as “cryptoassets” or “cryptoasset-related products.”
It was also noted that a number of firms that are advertising and even selling investments when it comes to cryptoassets do not have authorization from the FCA. This would mean that if people would invest in a type of cryptoasset, they will not be able to access the Financial Ombudsman Service, or even the Financial Services Compensation Scheme if anything goes wrong.
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Clarifications of Limitations
Although FCA does not regulate certain cryptoassets like Dogecoin, Ethereum, or Bitcoin, it was noted that they do regulate certain types of cryptoasset derivatives like contracts, future contracts, and options.
The FCA also included cryptoassets that they consider “securities.”
Furthermore, the FCA noted that firms must have authorization by them in order to advertise or even sell those types of products in the UK. The post then encouraged people to do their research in order to find out whether or not the crypto asset they plan to invest in is regulated.
As of the moment, the market is still slowly recovering.
Despite the massive drop in Bitcoin, the cryptocurrency is slowly becoming less bearish. The other top 10 cryptocurrencies are also slowly recovering. $HEX, on the other hand remains bullish over the last 30 days being one of the only cryptocurrency in the last 30 days that has seen positive or bullish movement.
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Written by Urian B.
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