Binance, the world’s biggest cryptocurrency exchange, has been banned by the UK’s financial regulator

British authorities have issued a warning to Binance, the most important cryptocurrency exchange platform. The Financial Conduct Authority (FCA), United Kingdom financial regulatory body, has decided that the company will not be able to carry out “regulated activities” on UK territory, as well as advising users to be wary of cryptocurrency investment ads.

Binance is a centralized online exchange platform that offers users a wide variety of financial products and services, including the purchase and trading of cryptocurrencies, digital wallets, savings accounts and even loans.

In this regard, the company believes that the FCA’s decision will not have a significant impact on the services provided by the exchange platform. It should be added that Binance is not based in the UK, so British citizens will still be able to use the website for the purchase and sale of cryptocurrency.

Although virtual assets are not regulated by the state, the FCA requires exchange platforms to register with the law; Binance does not have registration with the FCA, so in theory it is not allowed to operate in the UK.

Binance Group is currently headquartered in the Cayman Islands, while Binance Markets Limited (BLM) is an affiliated company based in London. The FCA determined that BLM is not allowed to carry out any regulated activity without the prior written consent of the regulator, setting a deadline for registration that expires on June 30.

While Binance users do not expect a severe impact on their investments, some virtual asset enthusiasts feel that the FCA wants to send a strong and clear message about its stance on the use of cryptocurrency and the security risks associated with this practice.

Experts believe that the British authorities are looking for all exchange platforms to register with the FCA due to the potential illicit use of these assets, in addition to trying to prevent users from falling into scams or misleading advertising that tries to sell worthless cryptocurrencies by ensuring attractive returns.

Finally, the authorities advised enthusiasts and investors to check whether the exchange platform they wish to invest in is registered with the FCA and, if not, to consider withdrawing their investment in the event of a possible attempt at fraud or the purchase of worthless assets. 

To learn more about information security risks, malware variants, vulnerabilities and information technologies, feel free to access the International Institute of Cyber Security (IICS) websites.