CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$19,091.68
  • ethereum
    ETH$1,062.31
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Crypto Fund
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » Binance Responds to the UK FCA’s Decision to Prohibit Operation in the Country

    Binance Responds to the UK FCA’s Decision to Prohibit Operation in the Country

    Author: Felix Mollen

    Last Updated Jun 28, 2021 @ 06:53

    The FCA said that Binance Markets Limited cannot offer derivatives in the UK. But Binance says that’s ok because it isn’t even operational.

    YESTERDAY, the UK’s Financial Conduct Authority issued a warning to Binance Markets Limited and the Binance Group, making it clear that Binance Markets Limited could not operate in the country as it is currently doing.

    Binance Markets Limited is not permitted to undertake any regulated activity in the UK. This firm is part of a wider Group (Binance Group).

    Due to the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA.

    No other entity in the Binance Group holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK.

    FCA: Binance Markets Limited Cannot Offer Derivatives in The UK

    According to the official note, derivatives offerings are strictly prohibited for Binance as they are considered regulated products by the FCA.

    That is to say, as per British law, any firm that wants to offer or promote derivatives -such as futures, swaps, options, or tokenized shares- must be registered and have the corresponding authorization.

    A derivative is a type of security in which the parties agree that its value will depend on an underlying asset, for example, the price of a Tesla stock or the price of Bitcoin at a set point in time.

    ADVERTISEMENT
    Explanation of Binance Futures
    Source: Binance

    Binance is also obliged to publish a disclaimer on its social media sites and homepage warning that “Binance Markets Limited is not permitted to undertake any regulated activity in the UK.”

    However, the FCA clarifies that the restrictions apply only to derivative products, recognizing that spot trading of cryptocurrencies is outside its regulatory powers.

    Binance: Nothing Has Really Changed (For Now)

    As scary as it may seem at first glance, the warning might not change much about the situation in which Binance currently operates.

    Binance Markets Limited is not the entity offering derivatives in the UK. With Binance being a global corporation based outside the country, the FCA rules do not apply to the full spectrum of Binance Group firms.

    Also, it is important to note that Binance clients can continue using the platform, knowing that the UK authorities are under no obligation to protect them in the event of an eventuality.

    Binance responded through its Twitter account, assuring that “the FCA UK notice has no direct impact on the services provided on http://Binance.com” and that its relationship with its users has not changed.

    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 https://t.co/QILSkzx7ac website. (1/4)

    — Binance (@binance) June 27, 2021

    The world’s largest crypto exchange explained that in addition to being a whole other entity, Binance Markets Limited is not currently operational.

    That is, the FCA’s warning is not, in fact, applicable to any of Binance’s branches right now.

    So there’s no need to worry. And it seems like crypto traders know it. The news didn’t cause any major panic episodes. Instead, BTC recovered a little bit, spiking over 4% in the last 24 hours.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • BrianBrooks
      Binance US Appoints Former OCC Head Brian Brooks as CEO
    • UK Bank to Cease Serving Customers Dealing With Cryptocurrencies
    • binance_logo3.jpg-min2-min
      Binance Stock Tokens Could Violate Securities Laws, German Regulator Says
    Tags: Binance Binance Futures Regulations United Kingdom
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Felix Mollen
    More posts by this author

    Felix got into Bitcoin back in 2014, but his interest quickly expanded to everything blockchain-related. He's particularly excited about real-world applications of blockchain technology. Having worked as a professional content writer for three years before that, Felix transitioned to working on blockchain-centered projects and hasn't looked back ever since.

  • bitcoin
    BTC$19,091.68
  • ethereum
    ETH$1,062.31
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    Over 33% of NFT Volume is Wash Trading: bitsCrunch CEO Interview

    Over 33% of NFT Volume is Wash Trading: bitsCrunch CEO Interview

    What’s Going on With Celsius Network and Why Is It a Huge Risk for Crypto (Opinion)

    What’s Going on With Celsius Network and Why Is It a Huge Risk for Crypto (Opinion)

    Institutions Are Definitely Here: ConsenSys’ Harriet Browning (Interview)

    Institutions Are Definitely Here: ConsenSys’ Harriet Browning (Interview)

    Binance Visa Card Guide: Read Before You Order

    Binance Visa Card Guide: Read Before You Order

    Bitstamp CEO JB Graftieaux: We Are Still Early (Interview)

    Bitstamp CEO JB Graftieaux: We Are Still Early (Interview)

    Okay Bears NFT Collection: The Complete Guide

    Okay Bears NFT Collection: The Complete Guide

    Our Ambition is to Become the Amazon of Crypto: Interview with Coinbase’s Guillaume Chatain

    Our Ambition is to Become the Amazon of Crypto: Interview with Coinbase’s Guillaume Chatain

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!