The UK’s Financial Conduct Authority (FCA) has issued a warning against Binance, the world’s largest cryptocurrency exchange, prohibiting it from conducting any regulated activities in the country.
The regulatory move highlights growing concerns over the risks associated with cryptocurrency investments and the potential for illicit financial activities.
The FCA’s ruling specifically targets Binance Markets Limited (BML), an affiliate of Binance Group, which is required to cease all regulated operations in the UK unless granted prior written consent.
Additionally, Binance must halt all advertising in the country by June 30 and ensure that records of its UK customers are readily available for potential regulatory review.
Despite the FCA’s decision, Binance has assured users that the ruling will have no direct impact on its global website, Binance.com.
As its existing exchange is not UK-based, users in the country can continue trading cryptocurrencies through the platform. However, the FCA has urged consumers to exercise caution and verify whether any crypto firm they engage with is properly registered with the regulator.
The FCA does not regulate cryptocurrencies themselves but requires exchanges to register under anti-money laundering rules. Binance’s failure to do so has led to this enforcement action. The regulator has emphasized that no Binance entity holds UK authorization, raising concerns about the risks of unregulated crypto trading.
This development is part of a broader regulatory crackdown on cryptocurrency platforms worldwide. In the US, Binance Holdings has been under investigation by the Securities and Exchange Commission (SEC) for potential money laundering and tax violations.
The SEC had previously warned US consumers about the platform in April. Meanwhile, in Canada, Binance recently withdrew from Ontario after the province’s Securities Commission accused it of failing to comply with regulations.
With regulators worldwide tightening their scrutiny, Binance faces mounting pressure to align with compliance standards or risk further restrictions in key markets.
