Binance Denounces FCA UK Notice Stating no Direct Impact on Current Services

Binance faces regulatory uncertainty through FCA UK notice. The exchange has set the record straight in their latest announcement.

By
Robert D. Knight
on
June 28, 2021
Category:
Blockchain News

Binance to Face Future Challenges in the UK?

Binance has had to set the record straight following a number of incorrect and misleading reports claiming that the company was banned from the UK when, in reality, no such ban has occurred or appears imminent.

Following significant FUD from mainstream press outlets, Binance was forced to issue a correction statement via its Twitter account this weekend. According to the statement which Binance issued this Sunday evening at 8.17PM UK time:

“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 http://binance.com website. 
“The Binance Group acquired BML May 2020 and has not yet launched its UK business or used its FCA regulatory permissions. For questions related to BML, please contact compliance@binance.uk.
“The FCA UK notice has no direct impact on the services provided on http://binance.com. Our relationship with our users has not changed.
“We take a collaborative approach in working with regulators and we take our compliance obligations very seriously. We are actively keeping abreast of changing policies, rules and laws in this new space.”

The following string of quotes display that Binance may have issues further entering UK markets, but entail no actual ban on unregulated Binance services.

Confused Reporting

In reality the FCA issued a consumer warning on Binance Markets Limited, a single UK-based subsidiary of Binance group with which the company had been exploring the possibility of offering regulated financial products.

The UK regulatory body was plain in its own statement that, “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.”

Regulated activities may refer to a number of matters including futures trading, options, securities and derivatives. The purchase and sale of cryptocurrencies such as BTC, ETH and BNB is not a regulated activity. 

Following the initial report by the Financial Times, a number of other UK media outlets including the BBC, The Guardian and The Telegraph, jumped on the story to amplify the doubt, either by incorrectly reporting that Binance was banned in the UK, or by burying the clarifying point that Binance was not banned at all, until the very foot of their report - the part of an article which experienced journalists know, the average person will read least diligently, if at all.

A bad day at the office for the UK press

Accuracy First

Following a bad day at the office for the UK press, Binance users in the UK will be relieved to discover that this particular FUD story can be attributed to poorly worded, sensationalist seeking headlines, and the conflation of Binance’s many business units. Cryptocurrency can be a baffling and confusing sector at the best of times.

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Robert D. Knight

Robert D. Knight is an experienced journalist and copywriter who has been working in crypto for 4+ years. His bags are heavy and he also hodls some cryptocurrency.

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