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June 27, 2021 - The UK' financial regulator has instructed crypto exchange Binance to stop all regulated activities in the UK, issuing a consumer warning on Binance Markets Limited and the Binance Group.
"Binance Markets Limited is not permitted to undertake any regulated activity in the UK. This firm is part of a wider Group (Binance Group).
"Due to the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA.
"No other entity in the Binance Group holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK.
"The Binance Group appear to be offering UK customers a range of products and services via a website, Binance.com."
Under the heading Investing In Crypto Assets Generally, the FCA sets out its position with regards to Crypto Assets and regulation, reminding consumers that they should:
"Be wary of adverts online and on social media promising high returns on investments in cryptoasset or cryptoasset-related products.
Most firms advertising and selling investments in cryptoassets are not authorised by the FCA. This means that if you invest in certain cryptoassets you will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong.
While we don’t regulate cryptoassets like Bitcoin or Ether, we do regulate certain cryptoasset derivatives (such as futures contracts, contracts for difference and options), as well as those cryptoassets we would consider ‘securities’ – find out more information. A firm must be authorised by us to advertise or sell these products in the UK – check our Register to make sure the firm is authorised. You can also check our Warning List of firms to avoid.
You should do further research on the product you are considering and the firm you are considering investing with. Check with Companies House to see if the firm is registered as a UK company and for directors’ names. To see if others have posted any concerns, search online for the firm’s name, directors’ names and the product you are considering.
Always be wary if you are contacted out of the blue, pressured to invest quickly or promised returns that sound too good to be true."
The FCA banned the sale to retail clients of investment products that reference crypto-assets in October last year, with the policy coming into effect on January 6 this year.
