UK regulator FCA says Crypto Exchange Binance has compiled with its June Requirements

0

The financial regulator of the UK, the Financial Conduct Authority (FCA) has stated that the cryptocurrency exchange Binance has complied with the requirements imposed on the company in June. The FCA also clarified that while Binance is allowed to provide some investment services but it is not authorized services related to crypto assets in the UK.

The UK Financial Conduct Authority on Wednesday announced that Binance has complied with the requirements it imposed on Binance Markets Ltd. and along with the other companies within the Binance Group which were operating in the UK in June. The UK Financial Conduct Authority stated, “On 25 June 2021, the FCA imposed requirements on Binance Markets Limited. The firm complied with all aspects of the requirements.”

The regulator had issued a consumer warning about Binance in June stating that the company “is not permitted to undertake any regulated activity in the U.K.” The British regulator also stated at the time that “Based upon the firm’s engagement to date, the FCA considers that the firm is not capable of being effectively supervised. This is of particular concern in the context of the firm’s membership of a global Group which offers complex and high-risk financial products, which pose a significant risk to consumers.”

Binance was required to display an FCA notice on its websites and media channels to that effect. On 30th June, Binance was also ordered to remove any advertising and financial promotions by close of business and provide written confirmation to the FCA. In addition to all the regulations, Binance must also “secure and preserve” all records relating to all the UK customers and the information and records need to be retained at a location in the UK. This is made a compulsion as these records must be available to the FCA, whenever it needs at its request.

The regulator stated that Binance “signed an undertaking that it would not offer any crypto-asset activities unless and until either it was registered or the authority informed the firm that it could avail itself of the transitional provisions in the MLRs (Money Laundering, Terrorist Financing and Transfer of Funds [Information on the Payer] Regulations 2017).”

You might also like
Leave A Reply

Your email address will not be published.