The UK Financial Supervisory Service (FCA) has announced that cryptocurrency exchange Binance has complied with the requirements it imposed on the company in June. The FCA has stated that Binance may offer some securities services, but not crypto-related services in the UK.
Binance followed FCA compliances
The UK Financial Supervisory Service (FCA) announced on Wednesday that Binance had complied with the requirements issued to Binance Markets in June and other Binance Group companies operating in the UK. The FCA wrote:
On June 25, 2021, the FCA required Binance Markets Limited. The company met all aspects of the requirements.
The regulator issued a consumer advisory on Binance in June stating that “you may not engage in regulated activities in the UK”.
The UK regulator said at the time: “The opinion is that the FCA cannot effectively oversee the company because of the company’s commitments to date. This is especially important concerning our partnerships with global companies that offer complex, high-risk financial products that pose significant risks to consumers.”
Crypto exchange was required to post FCA notices on its website and media channels. The company has also been instructed to remove all advertising and financial promotions and provide written confirmation to the FCA before the June 30 closing date. In addition, Binance must “secure and maintain” all records relating to all UK customers and keep them in one place in the UK. These records must be provided to the FCA immediately upon request.
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The FCA disclosed that Binance is an approved investment firm. The company was founded by Binance Capital Management Ltd. in May 2020 and renamed Binance Markets Ltd. in June 2020. The trade name Binance UK is also registered.
Under the FCA, a company may engage in some investment activities, including investment advisory, brokerage of investment transactions, obtaining and managing investments, and holding customer funds.
The regulator has signed a commitment not to offer any cryptocurrency activity unless Binance is “not registered” or notifies the company that regulators may use the transitional provisions of the MLR (Money Laundering, Financing, and Terrorism Transfers).