UK regulators make a mistake with crypto: Binance is shut down

The Financial Conduct Authority is a UK regulatory body that has prohibited Binance from offering certain services.

The FCA stated Saturday that Binance Markets Limited was not allowed to engage in any regulated activity within the UK. Binance, one of the most popular crypto exchanges worldwide, allows investors to trade and buy cryptocurrencies online. The statement added that no other entity within the Binance Group has any UK authorization, registration, or license to carry out regulated activities in the UK.

Although trading cryptocurrencies is not regulated directly in the UK, other related activities such as derivatives sales do require approval.

It also warned about the volatility of crypto markets. The FCA warned that you should be wary of advertisements online and social media promising high returns for investments in crypto assets or related products.

Following warnings from Japanese regulators on Friday, the UK has now banned the platform. Japan’s regulators said that the platform could be operating in Japan without authorization. Binance, Canada’s regulators have increased oversight of crypto markets and ordered that Binance cease serving customers in Ontario.

Daily Reuters Business reached out to Binance for comment but they did not respond.

In recent months, China has taken steps to crack down on crypto trading. China has reacted to the rise in cryptocurrency trading and stopped mining activity.

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The increased regulatory scrutiny has caused crypto prices to plummet in recent months. Bitcoin dropped below $30,000 on Tuesday for the first time since January, before recovering slightly over the weekend. Coinbase’s shares also fell, almost reaching an all-time low two months after it went public.