LONDON—Britain’s financial regulator has said Binance, one of the world’s largest cryptocurrency exchanges, cannot conduct any regulated activity and has issued a warning to consumers about the platform, which is coming under growing scrutiny globally.
In a notice dated June 25, the Financial Conduct Authority (FCA) said Binance Markets Ltd, Binance’s only regulated U.K. entity, “must not, without the prior written consent of the FCA, carry out any regulated activities … with immediate effect”.
It also issued a warning to consumers about Binance Markets and the wider Binance group, Al Jazeera reported.
Binance said in a statement that Binance Markets, which it acquired in 2020, was not yet using its regulatory permissions, and that the FCA’s move would not affect services offered on its website – Binance.com.
‘Collaborative Approach
“We take a collaborative approach in working with regulators and we take our compliance obligations very seriously. We are actively keeping abreast of changing policies, rules and laws in this new space,” a spokesperson said.
Binance announced in June last year that it had bought an FCA-regulated entity and would use it to offer cryptocurrency trading services using pounds and euros, Al Jazeera noted.