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Binance Says U.K. Ban Has No Direct Impact on Its Website - Bloomberg

Binance said it hasn’t yet launched its U.K. business and services on its website won’t see a direct impact from Britain’s Financial Conduct Authority’s notice that bans Binance Markets Ltd. from undertaking any regulated activity in the country.

Binance Markets Ltd. is “a separate legal entity and does not offer any products or services via the Binance.com website,” the crypto exchange said Sunday on Twitter. “The Binance Group acquired BML May 2020 and has not yet launched its UK business or used its FCA regulatory permissions.”

Binance has until Wednesday evening to confirm that it has removed all advertising and financial promotions, according to the FCA’s register. The exchange must also make clear on its website, social media channels and all other communications that it is no longer permitted to operate in the U.K.

Binance, which announced the acquisition of an FCA-regulated entity last June along with plans for the launch of Binance.UK, won’t be able to resume U.K. operations without prior written consent.

The move extends a regulatory crackdown on the cryptocurrency sector amid concerns about its potential involvement in money laundering and fraud. Binance withdrew an application related to the 5MLD -- an anti-laundering directive -- on May 17 following “intensive engagement from the FCA,” according to the watchdog, which said the action had been in train for some time.

Growth Driver

Bitcoin held onto earlier gains following the announcement, trading 6.1% higher at $33,227 as of 11:25 a.m. in New York. Crypto bulls often interpret tough regulatory action as a sign that the market is maturing.

“Regulation is an undeniable growth driver,” said Ivan Petuhovskii, co-founder of EXMO Exchange Ltd., a U.K. registered crypto exchange. “I am glad that the Wild West phase for the crypto market is almost over.”

Cryptocurrencies have been on a wild ride so far in 2021

“A significantly high number of cryptoasset businesses are not meeting the required standards under the money laundering regulations, which has resulted in an unprecedented number of businesses withdrawing their applications,” an FCA spokesperson said.

The Financial Times reported on the U.K. notice earlier.

Of the firms assessed, more than 90% have withdrawn applications following the FCA’s intervention.

Binance is being probed by several agencies in the U.S., Bloomberg News reported in recent months. And Japan’s Financial Services Agency issued a warning against Binance recently, saying it offered crypto services without registration.

Read more: Cryptocurrencies Not Good Medium for Payments, BOE Chief Says

— With assistance by Natalia Kniazhevich

(Adds Binance’s response on Twitter)

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