Three Countries Crackdown on Binance Exchange Over Cryptocurrency Trading in Three Months

Three Countries Crackdown on Binance Exchange Over Cryptocurrency Trading in Three Months

  • Changpeng Zhao's Binance Exchange has been banned by the United Kingdom after it failed to obtain a cryptocurrency license for operation
  • The UK's Financial Conduct Authority said the biggest cryptocurrency exchange should withdraw its advertisements in the country
  • The company was also told to issue a public alert on its website informing the public that it doesn't offer digital currency in the western country

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Binance Exchange has been barred from operating in the United Kingdom by the Financial Conduct Authority (FCA) and told to stop all form of advertisements.

The company was also directed to place a warning sign on its website, informing users that Binance Markets Limited is not permitted to undertake any regulated activity in the country.

The cryptocurrency exchange owned by Changpeng Zhao has been told to meet the market exit demands of the regulator by Wednesday.

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Binance Exchange cryptocurrency operation in the UK banned by the Financial Conduct Authority
Binance Exchange platform displayed on laptop and phone. Photo: Beata Zawrzel/Nur
Source: Getty Images

FCA stated that the UK arm is not authorized to operate in the country and no license issued to any subsidiary of Binance to conduct cryptocurrency exchanges.

What you need to know

Binance Markets Limited is meant to be a UK-focused cryptocurrency exchange, but it couldn't obtain the approval for the cryptocurrency registration regime necessary to operate digital currency in the country.

It had pulled out of the request for approval after having an engagement with FCA. Although, this ban doesn't stop UK citizens from accessing Binance from another country.

UK following steps of other countries

Binance had left China for the US to operate its cryptocurrency, but it's not having it easy in other countries, as Germany and Japan have also frowned at the services of the company.

The crypto exchange was accused by Germany's financial police of violating security rules with its involvement in stock tokens trading - this led to a warning alert issued against Zhao's firm in April.

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Also, in Japan, words from the Asian country's Financial Services Agency was that the biggest cryptocurrency platform is operating unauthorised cryptocurrency trade with citizens of Japan.

The statement by the Japanese authorities was made last week, almost three years after the country released its first warning alert against the Binance company.

Meanwhile, Legit.ng had previously reported that El Salvador has passed a law to make bitcoin its official currency, making it the first country to do so.

Salvadorans will continue using the dollar alongside the most popular cryptocurrency in the world. The government believes crypto will improve its economy.

El Salvador has low remittance, and with the adoption of bitcoin, the inflow of foreign transfer is expected to increase within the country.

Source: Legit Nigeria

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