- The UK Financial Conduct Authority issued consumer warnings on Binance Group
- FCA said Binance Markets Limited cannot engage in any regulated activity in the UK
The UK Financial Conduct Authority issued consumer warnings on Binance Markets Limited and the Binance Group. According to FCA, Binance Markets Limited cannot engage in any regulated activity in the UK. This includes Binance Group as well.
In official news, FCA said,
No other entity in the Binance Group holds any form of UK authorization, registration or licence to conduct regulated activity in the UK.
In addition, FCA said that the Binance Group appears to be offering UK buyers a range of products. Also, services via the website, Binance.com. The news comes after FCA warned people about 111 crypto firms operating without authorization.
Following this, the regulator warned people about investing in cryptos in general. “Be wary of adverts online and on social media promising high returns on investments in crypto or crypto-related products,” said FCA.
More so, the regulator added that the FCA does not authorize most firms that advertise and sell investments in cryptos. It means that anyone investing in cryptos won’t have access to the Financial Ombudsman Service. Or the Financial Services Compensation Scheme if things go wrong.
Further, FCA said that while they don’t regulate cryptos like Bitcoin or Ether, they regulate some crypto derivatives. This includes futures contracts, contracts for difference, and options. And also, crypto they would consider ‘securities.’
As per the FCA team, a firm should get authorization before doing any activities. This includes advertising or selling crypto in the UK. The regulator then urges people to check their Register to make sure the firm is authorized. Moreover, people can also check their Warning List of firms to avoid.