A consumer warning on Binance Markets Limited stated, “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 authorization, registration, or license to conduct a regulated activity in the UK.
The Binance Group appears to offer UK customers a range of products and services via a website, Binance.com.
Be wary of adverts online and on social media promising high returns on investments in a crypto asset or crypto asset-related products. The FCA does not authorize most firms to advertise and selling investments in crypto-assets. This means that if you invest in certain crypto assets, you will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong.
While we don’t regulate crypto assets like Bitcoin or Ether, we do regulate certain crypto-asset derivatives (such as futures contracts, contracts for difference and options), as well as those crypto assets we would consider ‘securities.’ We must authorize a firm to advertise or sell these products in the UK – check our Register to make sure the firm is authorized. You can also check our Warning List of firms to avoid.
You should do further research on the product you are considering and the firm you are considering investing with. Check with Companies House to see if the firm is registered as a UK company and for directors’ names. To see if others have posted any concerns, search online for the firm’s name, directors’ names, and the product you are considering.
Always be wary if you are contacted out of the blue, pressured to invest quickly, or promised returns that sound too good to be true.
Binance responded, stating: It’s disappointing to learn that some partners are taking unilateral action to stop servicing Binance users based on what appears to be an inaccurate understanding of events.
In one such instance, a partner referred its users to an FCA notice that was addressed to Binance Markets Limited (BML). The company stated that it was taking this action to keep people’s money “safe.”
We have always taken the security of our users’ money very seriously. In fact, the FCA notice was not about user deposits on Binance.com at all.
The FCA notice relates to BML, a company incorporated in the UK and regulated by the FCA. BML is a separate legal entity and does not offer any products or services via Binance.com.
If our partners have any concerns, we will welcome dialogue to discuss. For questions related to BML, please contact [email protected]
We take our compliance obligations very seriously, and we are committed to working collaboratively with regulators to shape policies that protect consumers, encourage innovation, and advance the industry.
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