Financial Conduct Authority: Binance is not banned in the UK and Binance’s lack of headquarters is a “big problem”

The FCA has confirmed to the media that its decision to issue a consumer warning to Binance Markets Limited relates to the firm’s anti-money laundering standards.

The FCA said in a June 26 announcement that Binance Markets Limited, which is part of the Binance Group, is not permitted to engage in any regulated activity in the U.K. The FCA also said that none of the other entities in the Binance Group hold any form of UK authorisation, registration or licence to carry out regulated activities in the UK.

Financial Conduct Authority: Binance is not banned in the UK and Binance's lack of headquarters is a "big problem"

The FCA confirmed to foreign media outlet Decrypt today that its decision to issue a consumer warning to Binance Markets Limited relates to the firm’s anti-money laundering (AML) standards, with an FCA spokesperson saying: “It is clear to us that there are issues in this area”.

The FCA declined to elaborate on its specific concerns about Binance Markets Limited’s AML approach. “It’s difficult and we don’t want to be specific about our concerns about the company, but it’s safe to say that it’s not on our register.”

Binance not completely banned in the UK

The FCA said its consumer warning against Binance Markets Limited is not a complete ban on cryptocurrency exchanges operating in the U.K. It does not mean that U.K. customers cannot access Binance from their homes or any other place with an Internet connection, and they can continue to trade using Binance’s main platform.

Financial Conduct Authority: Binance is not banned in the UK and Binance's lack of headquarters is a "big problem"

The FCA spokesperson added: “In effect, if you are a UK consumer [using Binance], all you need to do is use Binance.com …… I think the word ‘ban’ word is too serious. We simply acted where we had the power to do so and took the steps we thought were appropriate to protect as many consumers as possible.”

What is Binance Markets Limited all about?

In June 2020, Binance acquired a company called EddieUK and renamed it Binance Markets Limited. two days before this name change, Binance CEO Changpeng Zhao was appointed as a “significant controller” of the company “The company is now based in London.

According to a spokesperson, Binance Markets Limited was acquired to help launch the cryptocurrency exchange binance.uk, which will serve U.S. consumers in a similar way to binance.us, which will serve U.K. consumers.

A Binance spokesperson told Decrypt that Binance.uk has not yet launched, but if it receives regulatory approval, Binance Markets Limited will “own and operate” binance.uk.

Binance claims not having a headquarters is a “big issue”

The FCA also told Decrypt that Binance’s lack of a headquarters is a “big problem”.

As previously reported by BizTweet, at this year’s 2021 Ethereal Virtual Summit, Binance CEO Changpeng Zhao reiterated that the company does not have a headquarters. “Everyone’s definition of a company’s headquarters is slightly different, our leadership team is not sitting in an office, and we don’t have a clear headquarters to go to.”

Binance has previously had offices in China, Japan, Taiwan and Malta; last year, Malta clarified that Binance was not licensed to operate in the country. Five months later, the Malaysian Securities Commission charged the company with operating illegally in Malaysia.

In 2017, the year Binance left China, it registered in the Cayman Islands as Binance Holdings Limited (Binance). A corporate link document shows that the Cayman Islands is Binance’s headquarters, and the company has previously registered several trademarks for the Binance name and logo using that address.

In 2019, Binance also registered Binance Investments Company (Binance) in the Seychelles. Meanwhile, it is known that Changpeng Zhao himself is based in Singapore.

A company’s headquarters is generally its principal place of business, usually the legal registered address where it is running its business. For example, it is publicly available that Binance Markets Limited is headquartered at 167-169 Great Portland Street, London, and was incorporated on 24 June 2021.

Binance claims not to have received a notice from the FCA

Although the FCA confirmed to Decrypt that its consumer warning to Binance Markets Limited was due to the company’s apparent lack of anti-money laundering controls.

Financial Conduct Authority: Binance is not banned in the UK and Binance's lack of headquarters is a "big problem"

However, this is news to Binance, with a Binance spokesperson telling Decrypt: “This is the first time I have had clear confirmation that the FCA has taken this route and I was surprised to hear this from the FCA”.

Immediately after the FCA announced this warning, Binance, for its part, also issued a statement saying: “BML is a separate legal entity and does not offer any products or services through the Binance.com website. The UK FCA notice does not directly affect the services offered by Binance.com. Our relationship with our users does not change the collaborative approach we take when working with regulators and we take our compliance obligations very seriously.”

Photo credits: Twitter, web

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/financial-conduct-authority-binance-is-not-banned-in-the-uk-and-binances-lack-of-headquarters-is-a-big-problem/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-06-29 02:10
Next 2021-06-29 02:15

Related articles