The UK’s banking authority has banned Binance, the world’s largest cryptocurrency exchange.
The Financial Conduct Authority (FCA) has decided that the company cannot engage in any “regulated activity” in the United Kingdom.
It also issued a consumer alert about Binance.com, recommending users to be aware of advertisements promising huge returns on cryptocurrency investments.
The FCA notice, according to Binance, will have no “direct impact” on the services it offers through its website Binance.com.
Because Binance’s current crypto exchange is not based in the United Kingdom, the FCA judgement will have no effect on UK people who use the website to buy and sell cryptocurrencies.
The FCA does not regulate cryptocurrencies, but it does require cryptocurrency exchanges to register. Binance is not permitted to operate an exchange in the United Kingdom since it has not registered with the Financial Conduct Authority (FCA).
The FCA’s move comes in the wake of regulatory backlash against bitcoin exchanges around the world.
Binance.com is a centralized online exchange that allows users to buy and sell a variety of digital currencies, as well as digital wallets, futures, equities, savings accounts, and even lending.
The regulator also stressed that no entity in the Binance Group holds any form of authorisation, registration or licence to conduct regulated activity in the UK.