Cryptocurrency exchange Binance banned by UK financial authorities, Japanese Financial Services Agency warns


Financial Conduct Authority (FCA) of the United Kingdom has not been allowed to do business in the United Kingdom on June 26, 2021 for Binance, a major cryptocurrency exchange represented by Chinese Canadian Changpeng Zhao. Announced that it will ban business in the country for the reason. Binance, meanwhile, has indicated that it will continue to serve UK residents, saying it is a subsidiary regulated by financial authorities. Binance had just been warned by the Financial Services Agency of Japan on June 25th as 'an unregistered crypto asset exchange business'.

Consumer warning on Binance Markets Limited and the Binance Group | FCA

Binance Crypto Exchange Ordered to Cease UK Activities --WSJ

Binance Can't Do Business in UK But Crypto Trading Unaffected: British Financial Watchdog --Decrypt

The FCA announced on June 26, 'Binance Markets Limited, a subsidiary of the Binance Group, is currently not permitted to engage in regulated businesses except with the prior written consent of the FCA.' ..

According to The Wall Street Journal, Binance had applied to the FCA for its UK branch, Binance Markets Limited, but withdrew its application on May 17. An FCA spokeswoman told The Wall Street Journal, 'Many crypto asset traders do not meet the criteria required to obtain a permit. 90% of the businesses we have reviewed so far. Has withdrawn the application after our instructions, 'said Binance, who was forced to withdraw the application because it failed to pass the review of the UK's money laundering regulations.

Binance, meanwhile, claimed that the service would not be impacted because the FCA banned the business from Binance Markets Limited, a group company acquired by the company.

Decrypt, a crypto asset news site, said, 'Unfortunately, UK financial regulators have announced that'Binance cannot operate in the UK', but UK traders will continue to be able to use Binance.' And upheld Binance's claim.

According to Decrypt, Binance Markets Limited has applied for permission to open accounts for UK users with the goal of launching the service in the summer of 2020, but has not been approved by the FCA. In the UK, crypto asset exchanges are required to obtain official FCA approval by March 2022, but until then they will be able to serve UK users.

The Financial Times, a British letter, said the FCA was 'one of the most important steps global regulators have taken against Binance. This is one of the frauds that consumers have taken, such as money laundering and fraud. from concerns that are not sufficiently protected from the act, regulatory authorities and would be an indication of that to strengthen the regulation of encryption assets industry ' evaluation was.

In addition to the United Kingdom, financial authorities such as Japan, the United States, Germany and Canada are also working to tighten the tightening on Binance. On June 25, the Financial Services Agency issued a warning that Binance Holdings Limited, which operates Binance on the crypto asset exchange, was conducting a crypto asset exchange business with Japanese residents without registration.

About those who perform crypto asset exchange business without registration (BinanceHoldingsLimited)
(PDF file)

According to Bloomberg, the US Department of Justice and the Internal Revenue Service have begun

interviews with people familiar with Binance. Reuters also reported in April 2021 that the Federal Financial Supervisory Authority (BaFin) of Germany is considering fines for Binance for issuing digital tokens without providing investors with prescribed information. ..

In addition, Binance announced on June 26 that Canada's tightening of regulations has prevented it from continuing its business in Canada.

Terms of Use Review (2021-06-25) | Binance Support

in Web Service, Posted by log1l_ks