The Financial Conduct Authority (FCA) of the United Kingdom has ordered cryptocurrency exchange Binance to cease all regulated operations in the nation, citing a lack of authorisation.
The exchange would not be permitted to engage in any regulated operations without the FCA’s prior written authorization, according to a statement released on Saturday.
“No other entity in the Binance Group is authorized, registered, or licensed to conduct regulated activity in the United Kingdom.”
Binance Markets Ltd, Binance’s UK firm, “shall not, without the prior written authorisation of the FCA, carry out any regulated activities…with immediate effect,” according to a Financial Conduct Authority (FCA) notification dated June 25.
On Sunday, Binance did not respond to a request for comment.
While cryptocurrency trading is not directly regulated in the United Kingdom, providing services such as cryptocurrency derivatives trading does require authorization.
Binance has been informed by the FCA that it must post a notice on its website and social media channels by June 30 stating that “BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE UK.”
It must also safeguard and retain all records relevant to UK consumers by July 2 and notify the FCA of this.
The agency did not explain why it took the actions against Binance, which has previously stated that it takes its legal obligations “extremely seriously” and works “collaboratively with regulators and law enforcement.”
The Financial Conduct Authority (FCA) is boosting up its regulation of cryptocurrency trading, which has grown in popularity in the United Kingdom and other countries across the world.
Since January, the FCA has compelled all companies that provide cryptocurrency-related services to register and demonstrate that they follow anti-money laundering regulations. However, it was reported earlier this month that only five companies had registered and that the remainder were still not in compliance.
A notification released on the website of Japan’s Financial Services Agency declared on June 25 that Binance was operating unlawfully in the country.
Bloomberg reported last month that US Justice Department and Internal Revenue Service agents investigating money laundering and tax evasion had sought information from individuals with knowledge of Binance’s operations.
The German financial authority BaFin warned the exchange in April that it risked being penalized if it offered digital tokens without a prospectus to investors.