It’s official. Binance Markets Limited (BML) has finally complied with all the FCA requirements. However, unclear data from FCA shows Binance may still not operate fully in the UK. Read on for more details.
So, what exactly is happening between the FCA and Binance?
The FCA made a major announcement on 26th June 2021, stating that BML cannot conduct regulated activity in the UK. This caused a massive shock in the crypto scene since Binance is currently the world’s largest cryptocurrency exchange.
Binance was quick to respond, stating that Binance Markets Limited is the part of the Binance Group that is regulated by the FCA in the UK. According to Binance, BML is not the entity offering products or services via www.binance.com.
It added that the FCA notice had not impacted its services, and nothing had changed for Binance users.
Data directly from the FCA shows that BML now complies with the FCA requirements. The 25th August 2021 update specifically says:
In short, BML has complied with the FCA requirements and can do some limited activities. Let’s zoom in on those activities.
What Binance can and can’t do in the UK
In one part, the FCA says BML has fully complied with its requirements. On another part, the FCA says BML still can’t conduct business in the UK. Confusing, right? Let’s clear this up.
After digging deep into the FCA Register, here’s exactly what BML can do:
- Advice on investments apart from pension transfers and opt-outs
- Arrange deals in investments
- Deal in investments as principal
- Make arrangements to transact on investments
- Agree to carry on regulated activities
And here’s what BML can’t do in the UK:
- Lend money
- Use clients’ money to finance its business
Meanwhile, it’s reassuring to know that Binance has complied with all FCA requirements. In fact, Binance’s CEO tweeted that it’s a positive step. As a result, Binance users in the UK can stay optimistic that the FCA may soon lift all restrictions against BML.
Contributors
