UK Financial Conduct Authority imposes ban on Binance Markets

This past weekend, the U.K. Financial Conduct Authority (FCA) said Binance Markets Limited, the U.K. division of cryptocurrency exchange Binance, was “not permitted to undertake any regulated activity in the U.K.”

Why should we care?
Binance is the world’s largest cryptocurrency exchange by trading volumes. The FCA’s ban suggests heightened concerns among U.K. regulators regarding the risks related to activities on cryptocurrency exchanges. Despite this apparent setback, U.K. users will still be able to engage in crypto trading on Binance.com. “The FCA U.K. notice has no direct impact on the services provided on Binance.com...Our relationship with our users has not changed,” the company was quoted as saying in one report. The FCA requires cryptocurrency exchanges to register with it, and therefore Binance Markets Limited cannot carry out any regulated activities without approval from the FCA. The FCA’s cautionary move highlights regulators’ concerns with risks around cryptocurrencies and their use as a conduit for illegal activities. Binance has also come under scrutiny from regulators in Germany, the U.S., and Japan. It is currently under investigation by the Justice Department and Internal Revenue Service, who are reportedly looking into possible money laundering and tax offenses. Japanese regulators last week also warned that Binance is operating in the country without permission.