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This photograph taken on April 26, 2021 in Paris shows a physical imitation of the Bitcoin cryptocurrency.

AFP via Getty Images

World’s Largest Cryptocurrency Exchange Binance Has Ignored Statements From Officials In Two Countries Its Affiliates Cannot Offer regulated services without authorization.

Britain’s Financial Conduct Authority and Japan’s Financial Services Agency both issued warnings, but cryptocurrency prices rose on Monday after Binance said the measures would have “no direct impact on the services provided.”

Two of the biggest cryptocurrencies, Bitcoin and Dogecoin, rose sharply. “Bitcoin came in at just under $ 35,000 during Asian trading this morning after a bearish weekend that saw the asset plummet to $ 30,300 on Saturday,” said Alexandra Clark, a salesperson at the GlobalBlock digital asset broker, in a blog post.

But Edwin Groshans, analyst at Height Capital Markets, said the warnings were negative. “We are of the opinion that although global regulators do not ban cryptocurrencies outright, they take negative measures for assets (restrictions, bans, capital requirements) and make it more difficult for the generalization of assets by the world. financial system. These actions are negative for all cryptocurrencies, including bitcoin and Ethereum.

Regulatory talks tend to drive prices down given fears that trade will be affected, not to mention the fear that a tougher stance by governments will delay wider adoption of cryptocurrencies.

Japan’s financial watchdog said on Friday that Binance was not registered to do business in the country. The UK’s Financial Conduct Authority has issued a “consumer warning” on Binance Markets Ltd. and Binance Group over the weekend.

“Binance Markets Limited is not authorized to undertake any regulated activity in the UK,” he said. “This company is part of a larger Group (Binance Group). Due to the imposition of requirements by the FCA, Binance Markets Limited is currently not permitted to engage in regulated activities without the prior written consent of the FCA.

Binance Group said it acquired Binance Markets in May 2020 and that BML has not launched its business in the UK. Binance Markets did not immediately respond to a request for comment.

BML is registered in the UK, so it cannot offer regulated services in Britain without the consent of the FCA. But businesses that are not registered in the UK are still allowed to interact with UK consumers. This means that Binance itself, which is not registered in Britain, can still operate there.

“No other entity in the Binance group holds any form of authorization, registration or license in the UK to conduct regulated activity in the UK,” FCA said. “The Binance Group appears to offer UK customers a range of products and services through a website, Binance.com.”

Binance said in a statement that it is aware of the FCA’s advice regarding Binance Markets. “BML is a separate legal entity and does not offer any products or services through the Binance.com website.

“The FCA UK notice has no direct impact on the services provided on Binance.com. Our relationship with our users has not changed. We take a collaborative approach in working with regulators and take our compliance obligations very seriously. We actively keep abreast of evolving policies, rules and laws in this new space. “

The FCA told Binance that by June 30, it must post a notice to consumers stating that “BINANCE MARKETS LIMITED IS NOT AUTHORIZED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE UK.”