Regulatory authorities from the UK have ordered Crypto Exchange Binance to stop any regulated operations nationwide.
As reported, the Financial Conduct Authority of the UK has stopped Binance from operating any crypto-related activity, even if regulated, in the UK. Another blow to Binance was when the exchange removed its application from the authority’s asset register, meaning that Binance will also not be able to operate any unregulated activities in the UK either.
The exchange has been given a deadline till the 30th of June to make any preparations for stopping activity and do business closure around the country, as ordered. The FCA has also instructed Binance to make announcements on their socials and websites regarding the ban. Additionally, the FCA has also said that the Crypto exchange must take care of the track record of the customers and users around the UK and must report to the FCA by the 2nd of July.
The Financial Conduct Authority of the UK made an announcement on Saturday that Binance Group no longer has the authority to operate any regulated crypto activities nationwide but was still offering some of the features to the people of the UK in online mode. As of now, crypto-based assets in the UK are not regulated, but other options such as futures and options trading are being actively regulated.
Strict Approval System
The government and regulatory authorities have been very strict in terms of providing approvals for crypto-based firms. The FCA UK has shown very aggressive behavior, with them only approving five crypto-based firms to operate in the UK with proper licenses. Binance did apply for registration from the FCA, but the exchange withdrew its application because of some very boiled-up engagement with authority. According to the guidelines provided by the FCA, crypto firms are allowed to provide their services if their application to the FCA is pending approval, but that didn’t turn out quite well for the world’s largest crypto exchange.
Binance under Fire
Binance has been facing rough days around the world, as the company is being scrutinized by regulators around the world, including regulatory authorities from the US, UK. The company has also been receiving multiple warnings from the Japanese authorities on its operations that are unregistered when it comes to regulations. Binance had previously stated that they are ready to work things out with regulatory authorities and take the matter in a very serious way.