The UK’s Financial Conduct Authority has ordered Binance, one of the world’s largest cryptocurrency exchanges, to cease all regulated activities.
The financial watchdog’s engagement in recent days is one of the most important actions a regulator has taken against Binance. The exchange has until Wednesday evening to confirm that it has taken off the advertisement, and met the watchdog’s requirements.
The intervention shows how regulators are pushing down on the cryptocurrency business for its possible role in illegal activities.
The FCA also issued a consumer alert this weekend, targeting both the Cayman Islands-registered Binance holdings firm and Binance Markets Limited, a London-based affiliate managed by CEO Changpeng Zhao and regulated by the UK regulator.
The UK’s financial watchdog stated that “no other entity in the Binance Group holds any form of UK authorisation, registration, or licence to conduct regulated activity in the UK,” and “no other entity in the Binance Group holds any form of UK authorisation, registration, or licence to conduct regulated activity in the UK.”
Binance did not respond to a request for comment, but it has stated it “takes its compliance obligations very seriously.”
The FCA’s cryptocurrency registration process, which is essential for digital asset companies, has not approved Binance Markets Limited.
The business applied to become a registered cryptocurrency corporation with the regulator, but withdrew last month “following intensive engagement.”
The FCA bases its decision on an evaluation of controls and policies aimed at preventing money laundering and terrorism funding.
Binance is one of the most prominent players in the rapidly growing cryptocurrency sector, providing a diverse range of services to consumers all over the world, including trading in hundreds of digital coins, futures, options, stock tokens, savings accounts, and lending. According to data from TheBlockCrypto, it had crypto trade volumes of £1.08 trillion last month.