The UK’s Financial watchdog, Financial Conduct Authority (FCA) has placed a ban on the activities of cryptocurrency exchange – Binance in the UK.
The Financial Conduct Authority warned consumers of the Binance Markets Limited Company as well as the Binance Group. According the FCA, the Binance Markets Limited is not permitted to undertake any regulated activities in the UK.
It continued saying owing to the imposition of the requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA.
It noted that there is no entity from the larger Binance Group which holds any form of UK authorization, registration or license to conduct business in the UK. And that it seemed the Binance Group is offering UK customers a range of products and services the Binance.com website.
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The FCA Advises on Investing in Crypto Assets
The Financial Conduct Authority FCA warned consumers to be wary of advertisements online. It also warned on social media publications or ads promising high returns on investments in crypto assets or crypto asset related products.
It said most firms advertising and selling investments in cryptoassets are not authorized by the FCA and thus will not be able to access the protective cover offered by the UK government if things go wrong.
It noted that while it doesn’t regulate crypto assets like Bitcoin or Ether, it does regulate certain cryptocurrencies derivatives such as futures contract, contracts for difference and options. It also regulates cryptocurrencies it deemed to be securities.
Founded in 2017 by Changpeng Zhao otherwise known as CZ, Binance has grown to be the largest cryptocurrency exchange by offering several products such as Trading Markets (Spot, Margin, Futures, Options), Lending, Savings, Project Launchpad.
It also has built a smart contract enabled public blockchain which is host to a lot of innovative blockchain based projects.
As at press time, the Binance coin BNB is currently trading at $278 at a market gain of 0.11% over a 24hr period.
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