The Financial Conduct Authority (FCA), Britain’s financial regulator, has announced that Binance’s cryptocurrency exchange has fulfilled the requirements it placed on it in June. Further clarifications by the FCA were made that Binance is permitted to provide certain investment services but is not allowed to provide services related crypto assets in the UK.
Binance has met the FCA requirements in June
On Wednesday, the UK’s Financial Conduct Authority (FCA), announced that Binance had met all requirements imposed in June on Binance Markets Ltd. as well as other Binance group companies in the UK. The FCA wrote:
Binance Markets Limited was placed under investigation by the FCA in June 2021. The requirements were met by the company.
In June, the regulator warned consumers about Binance. It stated that the company was not allowed to engage in any regulated activity in the UK.
The UK regulator also noted at the time that “Based on the company’s commitment to date, the FCA considers that the company is not in a position to be effectively supervised. This is particularly concerning in light of the fact that the company is a member in good standing of a global group offering high-risk and complex financial products. These products pose a significant risk to consumers.
Binance was required to place a notice from FCA on its website and media channels. The firm was also OrderAll financial and advertising materials must be removed by June 30, and written confirmation to FCA. Binance must also “secure and preserve” all records related to UK clients. These records must be kept in the UK. These recordings must be immediately made available to FCA upon request.
The FCA also explained that Binance had been an approved investment institution since April 2018, and was known as Eddieuk. Binance Capital Management Ltd. purchased the company in May 2020. In June 2020, Binance Markets Ltd. changed its name to Binance Markets Ltd. It also registered Binance UK.
The FCA allows the company to engage in certain investment activities. This includes providing investment advice, arranging investments transactions, protecting and managing investments, and holding client funds.
The regulator noted that Binance had signed a promise that it would not offer any crypto-asset activities until it was registered or notified by the authority that it can opt out. Use the MLRs transitional provisions [Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017]”
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