Binance (an exchange of cryptocurrency) has the time till Wednesday to abide by the latest notice from the Financial Conduct Authority. The order includes the termination of all the regulated operations in the U.K. following the country’s Financial Conduct Authority’s review of the activities of the firm.
It is prohibited for Binance Market Limited to start any regulated process in the United Kingdom, as declared by FCA in a statement. It further announced that none of the other bodies under Binance Group possesses the required permits for operating in the country. A strict warning has also been issued by the FCA, while condemning, regarding the investment through unauthorized exchanges. It elaborated by mentioning that the majority of the firms selling and advertising crypto investments have no authorization from FCA, which implies that an investor will not be able to access the Financial Services Compensation Scheme or the Financial Ombudsman Service in case of any uncertainty regarding his investment in an unauthorized exchange.
Although the cryptocurrencies such as Ether (ETH) or Bitcoin (BTC) are not regulated by FCA, rather it authorizes derivatives trading which comprises options and contracts or the future. Digital assets, which are expected to be securities, also come under the domain of the FCA’s control. The corporate structure of Binance was clarified by it on Sunday while replying to the FCA. It said that ‘Binance Markets Ltd.’ is an independent body that does not deliver any services or products through the website ‘Binance.com.’
The decision of FCA was taken just a day after Binance made the declaration of abandoning another of the leading markets. The consumers belonging to Ontario, the province of Canada in which about 15 million people reside, have the time till this year’s end for shutting down all the operating positions. It was informed by Binance to its customers on Friday that without providing any acceptable reason for its exit, Ontario has turned into a restricted jurisdiction for the company and its subsidiaries. Nonetheless, in the decision, this exhaustive crackdown executed by the Securities Commission of Ontario (OSC) has probably played a significant role.
The action against the parent companies of Poloniex and Kucoin has been taken by OSC for purportedly breaching the security laws. Recently this month, it was told by the regulator that the hearings against Bybit would be conducted for committing similar violations.