Also following the crackdown on all operations of Binance in Canada (Ontario), the U.K’s FCA has asked Binance to stop all services for British citizens.
Along with British operations, the regulator is also cracking down on Binance’s Cayman Islands operations.
Regulators all across the world have reacted to the new crypto-mania. The Financial Conduct Authority (FCA), the UK’s top financial watchdog, has ordered Binance to cease all regulated activity immediately.
The FCA has now imposed strict regulations on Binance, which is one of the most significant regulatory moves taken by a worldwide agency.
The news comes only a day after Binance said that its services would be suspended for users in Toronto, Canada, due to new compliance and jurisdictional changes in the region.
According to the Financial Times, the Financial Conduct Authority (FCA) has given Binance until Wednesday, June 30 to affirm its compliance with the watchdog’s criteria. The FCA’s official announcement reads as follows:
“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 a regulated activity in the UK”.
The FCA is now making it essential for all crypto companies to register under its rules, according to the publication.
Binance Markets Limited, on the other hand, does not fall into this group. Binance applied to the Financial Conduct Authority (FCA) to become a registered cryptocurrency corporation last month.
It later withdrew its application “following extensive discussion from the FCA,” according to a representative for the FCA.
The FCA’s decision to approve a crypto business is based on a number of elements, the most important of which are anti-money laundering and counter-terrorist financing.
The Financial Conduct Authority (FCA) has been cracking down on local enterprises in the United Kingdom throughout the crypto market’s boom and bust cycles.
The FCA stated earlier this month that a number of crypto firms in the United Kingdom are failing to follow the FCA’s new criteria.
The FCA has made it clear that it will not accept any form of lapse in the operations of crypto enterprises, as evidenced by the recent crackdown on large corporations like Binance.
As FT reports: “The FCA also this weekend issued a consumer warning against both the Cayman Islands-registered Binance holdings company and Binance Markets Limited, a London-based affiliate that is controlled by chief executive Changpeng Zhao and is overseen by the UK regulator”.
Notwithstanding the FCA’s restrictions on Binance’s operations in the United Kingdom, British people can still use the exchange’s services in other countries.
In addition, Binance is facing significant difficulties in other global marketplaces. Binance was warned by the Japanese regulator Finance Services Agency (FSA) last week for engaging in illicit cryptocurrency trading.