This week, news broke that the Financial Counduct Authority (FCA) has issued a warning to Binance, the world’s biggest cryptocurrency exchange.
The ruling stated that firm cannot conduct any “regulated activity” in the UK, while also advising people to be wary of adverts promising high returns on crypto investments.
Binance said the FCA notice would have no “direct impact” on the services it provides from its website Binance.com.
Binance’s existing crypto exchange is not UK-based so despite the FCA ruling, there will be no impact on UK residents who use the website to purchase and sell cryptocurrencies.
Commenting on the news, Chris Caruana, VP of AML solutions at Feedzai, stated:
This serves as a statement from the FCA regarding the expectation that firms wishing to conduct business in the UK in this industry will need a proper AML program and controls in place and remind the public of risks associated with trading cryptocurrencies. It’s no secret that a high number of firms have withdrawn their applications – or like Binance, who have not registered. This could be a result of their internal reviews concluding they don’t fall under the regulatory regime. Many may also seek more favourable or mature regulatory regime, as it pertains to this industry, outside of the UK from which to operate.