The UK’s financial regulador, the Financial Conduct Authority (FCA), has just ordered cryptocurrency exchange Binance to halt its regulated operations in the country.
According to the announcement, the watchdog is reviewing the operations of the platform, and has asked it to stop its operations in the meantime.
The FCA has stated:
“Binance Markets Limited is not permitted to undertake any regulated activity in the UK.”
In addition, any other division belonging to the Binance Group lacks the necessary licenses to operate in the country.
The regulator has also warned investors about the risks associated to investments in unregulated platforms:
“Most firms advertising and selling investments in crypto assets are not authorized by the FCA. This means that if you invest in certain crypto assets you will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong.”
We should take into account that Binance has recently announced it is ceasing its operations in Ontario (Canada).
It is still unknown whether the FCA’s actions will force the exchange to make a similar decision in the UK.
While crypto assets like Bitcoin and Ether are not regulated in the UK, some trading products related to them (futures and options trading) are actually regulated.