The Financial Conduct Authority (FCA) of the United Kingdom has banned Binance Holdings Ltd., the world’s largest cryptocurrency exchange, from carrying out any regulated activity in the country.
The agency also issued a warning to consumers related to the activities of both the Binance holding, registered in the Cayman Islands, and its subsidiary Binance Markets Limited, which is based in London and falls under the jurisdiction of the British authorities.
So far, this is one of the toughest measures taken by regulators in the world against Binance and its subsidiaries, explains the Financial Times.
“Binance Markets Limited is not currently permitted to engage in any regulated activity without the prior written consent of the FCA,” the FCA said in a statement. “No other entity within the Binance Group is authorized, registered or licensed to conduct regulated activities in the UK.”
The agency advised consumers to be wary of the exchange’s advertisements promising high returns on investment in crypto assets. Binance representatives said the company always works with regulators and takes its compliance obligations very seriously. However, they noted that the FCA ban “has no direct effect” on the services provided through the Binance.com website as Binance Markets Limited is a separate entity.
Binance Markets Limited applied to FCA to register as a cryptocurrency exchange, but reportedly withdrew it in May.
Binance in Japan
Last week, the Financial Services Agency (FSA) warned that Binance was engaged in unauthorized cryptocurrency trading involving Japanese citizens. The Japanese regulator issued a similar warning to the exchange in 2018.
Binance in Germany
In April, a German regulator warned investors that Binance may have violated securities regulations when launching exchange-traded token trading. The company failed to appeal this decision.
What is Binance?
Binance is one of the largest international online digital currency exchange services. Binance was founded in 2017. The general manager is Changpeng Zhao. For six months of work, Binance entered the list of the largest platforms in terms of cryptocurrency trading volume. The number of Binance users as of April 2018 is 7.9 million.
How secure is Binance?
Binance, being the largest cryptocurrency exchange in the world, has spent a lot of time and resources improving the security of its service. To enhance security, the exchange uses an artificial intelligence-based risk control system. After the 2019 hacker attack on Binance, when 7,000 bitcoins worth about $ 40 million at the exchange rate were withdrawn from its wallets, the company has further strengthened its systems.
At the beginning of its journey, Binance was founded in China, but did not last long. A couple of months later, the exchange moved its headquarters to Japan due to a potential cryptocurrency ban in China. A year later, it opened an office in Taiwan and announced a move to Malta due to favorable regulation in the cryptocurrency industry. The official legal entity Binance is registered in the Seychelles Islands. Zhao states that Binance has no head office and operates in a decentralized manner.
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He uses to dedicate part of his life to inspire others and help them achieve the most out of their lives. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He is Member of Institute of Directors in London, Member of Changer Club in Riga, Member of Fintech Association of Hong Kong, Member of Singapore Fintech Association, Member of Non Executive Director Association in London and Member of Alumni Network of Draper University in San Francisco. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.
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