About two months after warning regarding Binance Markets Limited, the UK Financial Conduct Authority (FCA) has provided an update on the matter.
A brief notice published by the regulator today states that Binance has complied with all aspects of the requirements imposed by the FCA.
Let’s recall that, in June, the FCA said Binance Markets Limited is not permitted to undertake any regulated activity in the UK. This firm is part of a wider Group (Binance Group).
Due to the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA. No other entity in the Binance Group holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK.
The Binance Group appear to be offering UK customers a range of products and services via a website, Binance.com.
Most firms advertising and selling investments in cryptoassets are not authorised by the FCA. This means that if traders invest in certain cryptoassets they will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong.
While the FCA does not regulate cryptoassets like Bitcoin or Ether, the FCA does regulate certain cryptoasset derivatives (such as futures contracts, contracts for difference and options), as well as those cryptoassets it would consider ‘securities’. A firm must be authorised by the FCA to advertise or sell these products in the UK.
Let’s note that today’s update does not provide any other information on the status of Binance in the UK or whether the FCA has changed its stance regarding the firm.