UK’s FCA says crypto exchange Binance Markets Limited can not operate in the UK.

United Kingdom's Financial Conduct Authority issued a warning to Binance Markets Limited that it can not operate in the country.

UK’s financial regulator FCA issued a warning to Binance Markets Limited and the Binance Group, making it clear that Binance Markets Limited could not operate in the country as it is currently doing. The FCA noted in the warning that due to the imposition of requirements by the financial regulator, Binance Markets Limited is not currently permitted to engage in any regulated activities without the prior written consent of the FCA.

 

Binance Markets Limited can not offer derivatives in the UK.

According to the FCA’s official note, derivatives offerings are strictly prohibited for Binance as they are considered regulated products by the financial regulators. According to the FCA, any firm that wants to offer or promote derivatives -such as futures, swaps, options, or tokenized shares- must be registered and have the corresponding authorization. A derivative is a type of security in which the parties agree that its value will depend on an underlying asset, for example, the price of a Tesla stock or the price of Bitcoin at a set point in time.

 

Nothing has changed: Binance.

The FCA’s warning, in reality, might not change much about the situation in which Binance currently operates. Binance Markets Limited is not the entity offering derivatives in the UK. With Binance being a global crypto firm based outside the country, the FCA rules do not apply to the full spectrum of Binance Group firms. It is important to note that Binance clients can continue using the platform, knowing that the UK authorities are under no obligation to protect them in the event of an eventuality. The crypto exchange responded through its Twitter account, assuring its customers that “the FCA UK notice has no direct impact on the services provided on Binance.com” and that its relationship with its users has not changed. 

 

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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