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UK bans world’s largest crypto exchange Binance

As the global curbing against digital currencies increased, the UK also warned its consumers about the platform

The UK has recently banned Binance, a crypto exchange, from conducting any exchange of cryptocurrencies in the country, according to the media. Binance is one of the world’s largest cryptocurrency exchange platforms. As the global curbing against digital currencies increased, the UK also warned its consumers about the platform.

Along with several other countries around the globe, the trading of cryptocurrencies has also soared in the UK markets. Since the first quarter of 2021, the Financial Conduct Authority (FCA) has required firms that offer cryptocurrency trading to register and prove their compliance with the authority’s anti-money laundering rules.

By June, only five firms were registered, and the majority were not compliant. FCA recently released a notice stating that Binance Market, the only regulated UK entity, is not allowed to carry out any regulated activities without the prior written consent of the FCA effective immediately.

However, Binance issued a statement to the media saying the FCA notice has no “direct impact” on the services it provides from its website Binance.com. “BML is a separate legal entity and does not offer any products or services via the Binance.com website. The Binance Group acquired BML May 2020 and has not yet launched its UK business or used its FCA regulatory permissions.”

Cryptocurrency trading is not yet directly regulated in the UK. Offering services such as trading in cryptocurrency derivatives are required to be authorised by the government. Notably, in June 2020, Binance had acquired an FCA regulated entity and planned to use it to offer cryptocurrency trading services using pounds and euros.

The FCA has ordered Binance to issue a notice by the end of June regarding the ban in the UK on its website and all social media handles. The firm is also asked to secure and preserve all records relating to UK consumers.

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