Topline
The U.K.’s financial regulator has banned Binance from operating in the country, joining Canada and Japan this weekend as the third major market causing trouble for the world’s largest cryptocurrency exchange as regulators around the world crack down on the industry.
Binance was rebuked by the FCA
Key Facts
Binance’s U.K. entity is not licensed to conduct “any regulated activity in the U.K.,” the Financial Conduct Authority said, ordering it to withdraw all promotions and advertising by the close of business Wednesday and to display a prominent notice on its site saying it is not permitted to work in the U.K.
While the FCA, and the U.K. as a whole, does not regulate cryptocurrencies, it requires exchanges to be registered to operate, which means companies must comply with anti-money laundering measures.
Binance, which withdrew its application to register last month, said the FCA notice has “no direct impact on the services provided on Binance.com,” which is run by a separate legal entity, adding: “we take our compliance obligations very seriously.”
It is the latest setback for Binance after it exited Ontario, Canada’s populous province, over the weekend and received a stinging rebuke from Japan’s financial regulator on Friday, which warned the exchange it was not permitted to operate in the country.
Despite the FCA’s ban, the market is largely unfazed, and the top two cryptocurrencies, bitcoin and ethereum, rose by roughly 4% and 9% over the last 24 hours.
Other major cryptocurrencies also rose on Monday, with cardano, dogecoin and Ripple’s XRP all jumping around 4-5% in the same time period.
Key Background
Binance is fighting fires in markets around the world as regulators push to rein in the booming crypto market, motivated by a desire to protect consumers and prevent financial crime. In the U.S., Binance is being investigated by the Justice Department and Internal Revenue Service over concerns the platform is being used to conceal illegal transactions or evade the taxman. China has been particularly strong in cracking down on financial institutions trading in digital assets and cryptocurrency mining, driven by environmental concerns and a desire to promote financial order.
Further Reading
Major Cryptocurrencies—Including Bitcoin, Ethereum, Dogecoin—Plummet As China Widens Crackdown (Forbes)
Leading U.S. Regulator Exposes Disunity In U.S. Crypto Strategy, Warns Of Innovation-Stifling Rules (Forbes)
Financial watchdog bans crypto exchange Binance from UK (FT)
The world’s biggest crypto exchange is running into trouble everywhere (Qz)
