UK’s Financial Conduct Authority Warns Consumers Against Binance Markets

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In Brief
  • FCA asserts that Binance is not permitted to conduct regulatory operations in the UK.

  • Binance reportedly does not hold any authorization, registration, or license to operate in the UK.

  • The UK joins the likes of Canada and Japan in cracking down on Binance's operation.

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The Financial Conduct Authority (FCA) of the U.K. has issued a consumer warning against Binance Markets. Their warning also extends to the Binance Group.

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As of June 26, Binance Markets Limited is no longer permitted to conduct any regulated activity in the UK, according to the FCA’s warning. Unless it gains prior written consent from the financial authority beforehand.

The warning also advised users to be wary of adverts online or on social media involving crypto assets. It reminded users that the FCA does not regulate most firms that advertise or sell crypto investments. However, they also stated that, while they do not regulate assets such as bitcoin and Ether, they do regulate crypto asset derivatives. More specifically things like futures contracts, and also crypto assets they classify as securities.

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“A firm must be authorised by us to advertise or sell these products in the UK,” the warning stated. It also highlighted that neither Binance Markets, nor any other entity in the Binance Group “holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK.”

Other nations crack down on Binance

The FCA’s move comes very shortly after the revelation that Binance could no longer offer services in Ontario, Canada. A statement on the Binance website said that Ontario had become a restricted jurisdiction. As such, any users of the exchange based in the Ontario region were advised to “take immediate measures to close out all active positions by December 31, 2021.”

Canada and the UK are not the only nations making moves against Binance. On June 25, reports revealed that Japan’s Financial Services Agency (FSA) issued a warning to the exchange about operating in the country without a proper license. This is the second such warning the FSA have issued Binance, with the first delivered in 2018. Japan is one of the first countries to require exchanges to register with the FSA before operating.

Binance has also reportedly come under scrutiny in other parts of the world. Suspicious or unlicensed operations were reported in countries such as Hong Kong and Germany.

Meanwhile, Binance themselves have stated they have always adhered to the financial regulations of the countries in which they operate.

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Dale Hurst is a journalist, presenter, and novelist. Before joining the Be In Crypto team, he was an editor and senior journalist at a news, lifestyle and human-interest magazine in the UK. Cryptocurrency was one of the first subjects he specialized in when first going freelance in 2018, reviewing exchanges and analysing lawsuits.

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