UK’s financial regulator blocks Binance crypto exchange

Users in the UK will be prohibited from trading through the world’s largest cryptocurrency exchange platform

The Financial Conduct Authority (FCA) has barred the world's largest cryptocurrency exchange platform, Binance, from operating in the UK,

The financial regulator has declared that Binance Markets Limited isn’t permitted to undertake any regulated activity in the UK, with the exchange platform unable to partake in any activities “without prior written consent of the FCA”. 

The FCA also issued a warning to consumers against adverts online and on social media that promise high returns on investments in cryptoasset or cryptocurrency-related products

Since most companies engaging in these products aren’t authorised by the FCA, consumers don’t have access to the financial services compensation scheme, and cannot rely on help and guidance from the financial ombudsman service.

“While we don’t regulate cryptoassets like Bitcoin or Ether, we do regulate certain cryptoasset derivatives (such as futures contracts, contracts for difference and options), as well as those cryptoassets we would consider ‘securities’,” the FCA said. “A firm must be authorised by us to advertise or sell these products in the UK.”

The proposals come as regulators around the world begin taking action against cryptocurrencies and crypto-related products. China, for example, has signalled a crackdown on Bitcoin and cryptocurrency mining, alongside Turkey, which is also banning cryptocurrencies. El Salvador, by contrast, has become the first nation to adopt Bitcoin as legal tender.

Related Resource

A new trust model for the 5G era

Data-in-motion security through a 5G infrastructure

Data-in-motion security through a 5G infrastructure - Business man and woman standing together - whitepaper from ThalesDownload now

The FCA previously banned cryptocurrency-linked financial products in October 2020 following a regulatory review. Due to the scope of market abuse and volatility of price movements, the regulator deemed such products to be ill-suited for retail consumers due to the potential harm they may pose.

The Binance ban, and consumer warnings, has been issued only a few days after the platform received a letter of commendation from the UK’s South East Regional Organised Crime Unit for its role in taking down drugs suppliers on the dark web. 

Binance had taken part in an international investigation with several law enforcement agencies across the world to take down the FANCYCAT ransomware group, which was laundering money from ransomware attacks as well as other illegal activities. 

Featured Resources

B2B under quarantine

Key B2C e-commerce features B2B need to adopt to survive

Download now

The top three IT pains of the new reality and how to solve them

Driving more resiliency with unified operations and service management

Download now

The five essentials from your endpoint security partner

Empower your MSP business to operate efficiently

Download now

How fashion retailers are redesigning their digital future

Fashion retail guide

Download now

Most Popular

RMIT to be first Australian university to implement AWS supercomputing facility
high-performance computing (HPC)

RMIT to be first Australian university to implement AWS supercomputing facility

28 Jul 2021
Samsung Galaxy S21 5G review: A rose-tinted experience
Mobile Phones

Samsung Galaxy S21 5G review: A rose-tinted experience

14 Jul 2021
Zyxel USG Flex 200 review: A timely and effective solution
Security

Zyxel USG Flex 200 review: A timely and effective solution

28 Jul 2021