Binance from operating in the United Kingdom. Announcing the decision on Saturday, the regulator said Binance Markets Limited, the UK division of the crypto exchange platform is not permitted to undertake any regulated activity in the UK without prior approval from the FCA. The Cayman Islands-domiciled exchange platform was in fact set to launch its own digital asset marketplace in the UK, but decided to withdraw its application to register with the FCA owing to its failure to meet the anti-money laundering requirements set out by the regulator.
According to a spokesperson for the FCA, the move has been anticipated for some time. “Binance Markets Limited withdrew their 5MLD application on 17 May 2021 following intensive engagement from the FCA,” the spokesperson told CNBC. “The action taken today on Binance Markets Limited has been in train for some time.”
However, according to the spokesperson, the scope of the ban is limited since it only prohibits Binance Markets Limited from offering regulated services in the country, which means, Binance, a non-registered firm can still offer crypto trading services to UK consumers through its website. This was reaffirmed by a Binance spokesperson who said: “The FCA UK notice has no direct impact on the services provided on Binance.com… Our relationship with our users has not changed.” The spokesperson further noted that the cyprotcurrency trading firm continues to cooperate with regulators as the company takes its compliance obligations “very seriously”.
