Binance to Stop Operations, Gets Warning from Various Financial Authorities
According to a warning memo released by the FCA (UK Financial Conduct Authority), Binance Group and Binance Markets Limited are providing customers with regulated financial investment tools and products through the website Binance.com. The FCA has prohibited Binance Markets Limited from undertaking any particular regulated activity in the United Kingdom.
In addition, the company hasn’t acquired any consent or gone through the registration process, therefore Binance is not authorized to conduct any regulated activities whatsoever in the UK. In January 2021, the FCA banned the sales of all crypto derivatives that include CFDs, options, futures and ETNs to retail clients. These derivatives are banned, because they are too risky and could result in potential harm to investors.
Other countries that have banned Binance operations
On Friday, Japan’s FSA (Financial Services Agency) handed Binance a formal warning, as it has been conducting its operations illegally, since it is not registered in the country.
Binance is also facing regulatory concerns in the US, China, Thailand, India, and most recently, in Ontario.
A Binance spokesperson says that they are working collaboratively with financial regulators and that they take compliance seriously. The crypto exchange giant has been through turmoil, with one scrutiny after another by the financial authorities in various countries. These financial regulators have advised consumers to always practice DYOR (do your own research), to better decide which cryptos are reliable and which ones are not to be trusted.
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