Blockchain & Crypto

UK Financial Authority bans operations of crypto giant Binance in UK

The financial authority of UK has invoked a ban on cryptocurrency exchange Binance and retrained it from conducting ‘any regulated activity’ and issued a warning to consumers about the platform and the whole Binance Group, the Reuters reported.

Through a notice dated 25th June, the Financial Conduct Authority (FCA) said Binance Markets Ltd, Binance’s only regulated UK entity, “must not, without the prior written consent of the FCA< carry out any regulated activities…with immediate effect”. The move comes after FCA asked all firms offering cryptocurrency-related firms to register with it and show compliance with anti-money laundering laws.

Cypto-currency Regulation in UK

Similar to India, the UK doesn’t have any regulation in place for crypto trading. However, crypto exchanges require authorization before offering services such as crypto derivative trading.

The FCA has ordered Binance to display a notice, by 30th June, stating “BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE UK” on its website and social media channels.

Since January, the FCA has required all firms offering cryptocurrency- related services to register with it. The firms had to show their compliance with anti-money laundering rules. However, the financial regulator said that only five firms registered with it. As of May 12, 90 firms had temporary registration, and 51 had withdrawn their applications for registration.

Binance is facing such issues in several countries, including India. The Enforcement Directorate recently issued a show cause notice to it’s subsidiary WazirX. The notice follows an investigation into an ongoing money laundering probe involving crypto transactions worth Rs. 2790.74.

Last week, a notice on Japan’s Financial Service Agency’s website said that Binance was operating in the country illegally.

Regulatory Status in India

The RBI has recently issued a compliance note to banks, asking them not to stop crypto traders and exchanges. However, it had asked banks to comply with the provisions of money laundering and FEMA.

The government has amended company law to ask companies and crypto exchanges to disclose crypto related transactions. There were also reports that the government may establish a new crypto-regulation panel. It was also reported that a Cryptocurrency Regulation Bill will soon be tabled in the Parliament.

Even the crypto industry has initiated processes to set up a formal board to create and implement a self-regulatory code of conduct for exchanges, amidst news that global crypto exchanges are lining up to enter the Indian market.

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Rohit Ranjan Praveer

Rohit is a practicing advocate at Delhi. Beginning as a tech enthusiast, Rohit always had a keen interest in computer forensics and information security. Building upon these fundamentals, he has undertaken extensive research on various techno-legal topics and continues his pursuit pass on valuable information to the masses, with a zeal to build something that outlasts him.​

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