Financial watchdog orders Binance to end ALL activities in blow to one of the world’s biggest cryptocurrency exchanges

THE UK’s financial watchdog has ordered cryptocurrency exchange Binance to end ALL activities.

The intervention comes as one of the most significant moves by any global regulator against the digital asset firm with subsidiaries around the world.

Reuters

Binance has been ordered by the UK’s financial watchdog to end all activities[/caption]

Reuters

It comes as a major blow to one of the world’s biggest cryptocurrency exchanges[/caption]

In a notice dated June 25, the Financial Conduct Authority (FCA) said Binance Markets Ltd, “must not, without the prior written consent of the FCA, carry out any regulated activities, with immediate effect”.

They added: “The FCA has told Binance that by June 30 it must display a notice stating “Binance Markets limited is not perimtted to undertake any regulated acitivity in the UK” or on its website and social media channels.

The company must also now preserve information relating to UK consumers and inform that the FCA this has been done by July 2.

The regulator did not explain why it had taken these measures.

The intervention comes as a sign of how regulators are cracking down on the cryptocurrency industry over concerns relating to its potential role in illegal activities such as money laundering and fraud.

As a result, the FCA also issued a consumer warning this weekend against both the Cayman Islands-registered Binance holdings company and London based Binance Markets Limited.

The entity had since applied to become a registered cryptocurrency company with the regulator, but pulled that application last month.

Rex

Binance offers a wide range of services to customers around the world that includes trading in dozens of digital coins[/caption]

The watchdog confirmed the application had been dropped “following intensive engagement from the FCA”.

Binance have also said it hasn’t yet launched its UK business and services on its website and so won’t see a direct impact from Britain’s Financial Conduct Authority’s notice.

Binance Markets Ltd. is “a separate legal entity and does not offer any products or services via the Binance.com website,” the crypto exchange said Sunday on Twitter.

“The Binance Group acquired BML May 2020 and has not yet launched its UK business or used its FCA regulatory permissions.”

Binance is one of the most important operators in the fast-emerging crypto market, offering a wide range of services to customers around the world.

Its British entity – Binance Markets Limited – was established a year ago as part of a plan by the broader group to launch a UK-focused exchange.

It includes trading in dozens of digital coins, futures, options, stock tokens, as well as savings accounts and lending.