FCA News: In recent times, when the cryptocurrency market frenzy has peaked, regulators in countries have also taken action. The latest attack came from England. The UK Financial Supervisory Authority (FCA) has asked cryptocurrency exchange Binance to immediately cease all regulated activity.
The UK Financial Supervisory Authority (FCA) has ordered cryptocurrency exchange Binance to cease any regulated activity in the country, saying the firm lacks authorization. The Financial Supervisory Authority said in a statement that the exchange will not be allowed to engage in any regulated activity without the prior written consent of the FCA. The description is as follows:
“Due to terms mandated by the FCA, Binance Markets Limited is not currently permitted to engage in any regulated activity without the prior written consent of the FCA. No other entity in the Binance Group has any UK authorization, registration or license to operate regulated business in the UK.
In the statement, it was also emphasized that it is necessary to be careful when investing in cryptocurrencies in general.
“Most firms that advertise and sell investments in crypto-assets are not authorized by the FCA. This means that if you invest in certain crypto-assets, you will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong.”
The FCA stated that while they do not regulate crypto assets such as Bitcoin or Ethereum, they do regulate certain asset derivatives (such as futures contracts, contracts for difference and options), as well as crypto assets that they consider ‘securities’.
With the recent crackdown on giant companies like Binance, it is clear that the FCA will not tolerate any shift in the operations of crypto firms.
Despite the FCA restricting Binance’s activities in the country, British citizens can still access exchange services in other jurisdictions. Binance is also facing huge headwinds in other global markets. Last week, the Japanese regulatory Financial Services Agency (FSA) warned Binance of unauthorized crypto trading.