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The Financial Conduct Authority, a UK regulator, has banned Binance, a popular cryptocurrency exchange, from offering certain services in the country.
“Binance Markets Limited is not authorized to undertake any regulated activity in the UK,” the FCA said in a statement on Saturday. Binance, one of the world’s largest crypto exchanges, allows investors to buy and trade cryptocurrencies online. “No other entity in the Binance group holds any form of authorization, registration or license in the UK to conduct regulated activity in the UK,” the statement continued.
Cryptocurrency trading is not directly regulated in the UK, but other related activities such as the sale of derivatives require approval.
The statement also included a warning regarding the volatility of the crypto markets. “Beware of online and social media ads promising high returns on investment in cryptoassets or crypto-asset related products,” the FCA said.
Crypto trading firm Coinbase shares tumble along with bitcoin
The UK ban follows news from Japanese regulators sending warnings to Binance on Friday. Japanese regulators have said the platform could operate in the country without proper authorization. Binance will also no longer serve customers in Ontario, Canada, effective December 31 after regulators stepped up oversight of crypto markets there.
Binance did not respond to CNN Business’s request for comment.
China has also cracked down on the crypto industry in recent months. The country has curbed mining activity and told major payment platforms and lenders that cryptocurrency trading will not be tolerated.
Crypto prices have fallen in recent times due to increased regulatory attention. Bitcoin fell below $ 30,000 for the first time since late January on Tuesday before rebounding slightly over the weekend. And shares fell for the Coinbase cryptocurrency exchange, almost hitting an all-time low just two months after the platform went public.
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