UK FCA Restricts Binance's UK Operations

In a recent development, Binance, the world's largest crypto exchange by reported turnover, has had its relationship with Dimplx soured. The firm's 2020 financial statement claimed 'zero turnover or fees in relation to any transactions conducted with any customer during the financial year,' which is contrary to the Financial Times' report that Binance Digital did not pay any tax in the said year. As a result, a transaction fee will apply to the funds.

The filing also stated that the same amount was owed to creditors. Dimplx directors alleged that the £100 million was balances held for Binance Digital customers who visited the website. The issue arose after an audit of Binance's 2020 annual report for its UK subsidiary, which inaccurately reported the nature of the exchange's business, revenue, assets, and liabilities.

The Financial Conduct Authority (FCA) has restricted Binance's UK operations, specifying that it must put a notice on its website, social media channels, and all other communications stating that it is no longer permitted to operate in the UK. Binance Markets won't be able to resume U.K. operations without prior written consent.

The restrictions are targeted at Binance Markets, a separate legal entity from Binance, but the FCA edict specifies that the notice must be put on and communication channels including the Binance mobile and desktop applications. The exchange has until the evening of June 30 to confirm that it has removed all advertising and financial promotions.

In response to the restrictions, a Binance spokesman said via email that the FCA's notice restricts but doesn't remove permissions owned by Binance Markets. The company stated that 'Binance Group acquired BML May 2020 and has not yet launched its U.K. business or used its FCA regulatory permissions.'

The move highlights the increasing scrutiny of the cryptocurrency industry by regulators, particularly in the UK. As the crypto space continues to evolve, it is essential for exchanges like Binance to ensure compliance with regulations and maintain transparency.

References:

* Financial Times

* The Ledger

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