Binance has been given up till Wednesday to obey the new directive from the Financial Conduct Authority.
After going through their modus operandi, the FCA has decided to suspend Binance’s activities despite its reputation as the number one crypto exchange company in the world.
The Financial Conduct Authority in the UK stated categorically that Binance Markets Limited no longer has a foothold in the country. In addition, the body banned any group related to Binance from performing.
During the announcement, the FCA reminded the public that it was dangerous to do business with exchanges without the government’s backing.
Although the FCA’s business isn’t to monitor BTC or ETH, the body is responsible for sanitizing anything related to trading derivatives of which future contracts and options belong to. This means digital assets that are considered to be securities are also under the FCA’s control
In response to the sanction, Binance stated that the arm, Binance Markets Ltd is completely different from Binance.com and as such perform different functions.
FCA’s proclamation on the ban of Binance must be a hard one to swallow for the exchange company as it recently made plans to also quit the Ontario market where it has access to 15 million potential clients.
On Friday, Binance declared that the Ontario market has become a “restricted jurisdiction” adding that they would leave by December 2021. Although Binance was not open concerning the reason for its decision, it is very likely that regulations from the Ontario Securities Commission prompted it.
Already, the OSC has summoned Bybit to the court for breaching security rules. This also affects the company from which Kucoin and Poloniex emanated from.
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