Governments around the world have vowed to ramp up regulations on the exchange of cryptocurrency. Now most recently, Binance Markets Limited (BML), the British division of the world’s largest cryptocurrency exchange, has been effectively banned in the U.K. Britain’s Finance Regulator, or the Financial Conduct Authority (FCA), has informed the Company that they will no longer be allowed to take part in “regulated activity” within the UK.
While the FCA does not regulate cryptocurrencies themselves, it requires crypto exchanges to register with them and prove they are in compliance with anti-money laundering rules.
Binance was set to launch its own cryptocurrency exchange in the U.K., but oddly enough withdrew their application to register with the FCA. A spokesperson for Binance stated, “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.”
Binance however has claimed that the recent announcements by the FCA will not directly affect their operations in Britain. While BML is U.K. based and has thus far been barred from operating within the country, Binance Group is based in the Cayman Islands. This means that U.K. customers can still use Binance’s website to exchange cryptocurrency.
The Company issued a tweet earlier stating, “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 FCA’s actions are essentially a statement that U.K. regulators are averse to the idea of a “shadow” currency system within its borders. Bitcoin (CRYPTO: BTC) seems to be relatively unfazed by the recent news with Binance and is currently trading at USD 34,639.