Britain’s financial regulator has banned Binance, the world’s biggest cryptocurrency exchange, from operating in the UK.

In a statement on Saturday 26^th June, the Financial Conduct Authority (FCA) revealed details of the ban, which prevents Binance Markets Limited – part of the wider Binance Group – from undertaking “regulated activities”.

“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,” the regulator confirmed in a statement.

“No other entity in the Binance Group holds any form of UK authorisation, registration or license to conduct regulated activity in the UK,” it added.

At present, the FCA has offered no firm explanation for the ban. However, the announcement follows recent efforts to reel-in cryptocurrency investment platforms.

The regulator has required cryptocurrency firms to register their services since January this year as part of rules aimed at tackling money laundering.

Earlier this month, it revealed that many cryptocurrency firms are failing to meet anti-money laundering rules. It also announced an extension to its registrations programme from 9th of July to March 2022.

The FCA does not regulate cryptoassets such as Bitcoin or Ethereum. However, the regulator noted that it does regulate “certain cryptoasset derivatives” such as “futures contracts, contracts for difference and options”.

Additionally, the FCA also regulates cryptoassets that would it consider to be ‘securities’. Under these rules, a firm “must be authorised by us to advertise or sell these products in the UK,” the FCA said.

Binance.com is an online exchange that offers investors a range of services, including the ability to purchase and trade cryptocurrencies, futures contracts and securities.

The group under which the firm operates is based in the Cayman Islands and was previously based in Malta.

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Reacting to the FCA move, Binance issued a statement on its official Twitter channel, which stated: “We are aware of recent reports about an FCA UK notice in relation to Binance Markets Limited (BML).

“BML is a separate legal entity and does not offer any products or services via the Binance.com website.”

“The Binance Group acquired BML May 2020 and has not yet launched its UK business or used its FCA regulatory permissions.”

Binance added that the FCA notice has “no direct impact” on the services it provides or its relationship with users.