The rapidly evolving cryptocurrency market continues to see a rush to regulate its worldwide momentum, the latest move coming from Great Britain in the form of a ban on Binance.
The platform was denied the ability to operate in the U.K. by Britain’s Financial Conduct Authority, which stated the U.K. division of Binance, “is not permitted to undertake any regulated activity in the U.K.”
It’s a limited ban, though; Binance may still provide users a crypto exchange marketplace.
Beginning Wednesday, Binance — the global cryptocurrency leader by trading volume — must notify consumers on its website and apps using these words:
“BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE U.K. 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 U.K. authorization, registration or license to conduct regulated activity in the U.K.).”
Binance had planned its own digital asset marketplace but was not able to meet stringent anti-money-laundering rules and decided to withdraw applications to register with the FCA.
“Binance Markets Limited withdrew their 5MLD application on 17 May 2021 following intensive engagement from the FCA,” a spokesperson for the FCA told CNBC. “The action taken today on Binance Markets Limited has been in train for some time.”
The FCA spokesperson underscored that, while Binance can’t offer regulated services, it can provide U.K. citizens crypto trading through its website.
A Binance spokesperson told CNBC: “The FCA U.K. notice has no direct impact on the services provided on Binance.com … Our relationship with our users has not changed.”
Bitcoin, which hit its all-time high of almost $65,000 in April, was trading below $35,000 on Monday.