Top line

The UK’s financial regulator has banned Binance from operating in the country and is the third major market this weekend after Canada and Japan to cause problems for the world’s largest cryptocurrency exchange as regulators across the world crack down on the industry.

Binance was reprimanded by the FCA

NurPhoto via Getty Images

Important facts

Binance’s UK unit is not licensed to conduct “any regulated activity in the UK,” said the Financial Conduct Authority, ordering that all promotions and advertising be withdrawn by Wednesday’s close and a clear notice posted on their website that this is not the case is allowed to work in the UK

While the FCA and the UK as a whole do not regulate cryptocurrencies, exchanges must be registered to operate, which means companies must adhere to anti-money laundering measures.

Binance, which withdrew its registration application last month, said the FCA notice has “no direct impact on the services provided on Binance.com,” which is operated by a separate legal entity, adding, “We are taking our compliance Commitments very seriously. ”

It is the latest setback for Binance after leaving Ontario, Canada’s populous province, over the weekend and receiving a stinging reprimand from Japan’s financial regulators on Friday warning the exchange it is banned from operating in the country.

Despite the FCA’s ban, the market is largely unimpressed and the top two cryptocurrencies Bitcoin and Ethereum have soared about 4% and 9%, respectively, in the past 24 hours.

Other major cryptocurrencies also rose on Monday, with Cardano, Dogecoin, and Ripple’s XRP rising roughly 4-5% over the same period.

Key background

Binance battles fires in markets around the world as regulators push to contain the booming crypto market, motivated by a desire to protect consumers and prevent financial crime. In the US, Binance is under investigation by the Department of Justice and the Internal Revenue Service over concerns that the platform is being used to disguise illegal transactions or evade tax officials. China has been particularly tough on financial institutions trading digital assets and cryptocurrency mining, fueled by environmental concerns and a desire to promote financial order.

further reading

Major cryptocurrencies – including Bitcoin, Ethereum, Dogecoin – collapse as China expands penetration (Forbes)

Leading US regulator reveals disagreement in US crypto strategy and warns of rules that inhibit innovation (Forbes)

Financial regulator bans UK (FT) crypto exchange Binance

China Takes Crypto Deal, Says “Speculative” Trade “Seriously Violates” Financial Regulations (Forbes)

The World’s Largest Crypto Exchange Is Getting In Trouble Everywhere (Qz)