British FCA has resolved its regulatory issues with Binance

The UK’s Financial Conduct Authority (FCA) has announced that the Binance cryptocurrency exchange has met requirements imposed on the company in June. The FCA further clarified that while Binance is authorized to provide certain investment services, it is not authorized to provide services related to crypto assets in the United Kingdom.

Binance met the FCA requirements imposed in June

The British Office of Financial Ethics (FCA) announced on Wednesday that Binance has complied with the requirements imposed on Binance Markets Ltd. in June. and other companies in the Binance Group operating in the United Kingdom. FCA wrote:

On June 25, 2021, the FCA filed requests from Binance Markets Limited. The company met all aspects of the requirements. “

The regulator issued a consumer warning about Binance in June, stating that the company “is not authorized to carry out any regulated activities in the United Kingdom”

The British regulator also noted that “Based on the company’s involvement to date, the FCA believes that the company cannot be effectively supervised. This is particularly worrying in relation to the company’s membership in a global group that offers comprehensive and high-risk financial products that pose a significant risk to consumers. “

To that end, Binance was required to display FCA notices on its websites and media channels. The company was also ordered to remove all advertising and financial promotions by the end of June 30 and provide written confirmation from the FCA. In addition, Binance must “secure and store” all data relating to all UK customers and must be kept on site in the UK. These records must be made available to the FCA immediately upon its request.

Since April 2018, Binance has worked with an authorized investment firm called Eddieuk. The company was bought by Binance Capital Management Ltd. in May 2020 and its name was legally changed to Binance Markets Ltd. in June 2020. It also registered the trade name of Binance UK.

According to the FCA, a company is permitted to perform certain investment activities, including providing investment advice, arranging investment transactions, securing and managing investments, and holding clients’ funds.

Changpeng Zhao, CEO of Binance, commented on the development on Twitter and he said: “Positive progress. One small step after another. “

It is worth noting that the company has taken a number of steps in recent months to increase compliance efforts. These included hiring new employees and introducing mandatory KYC requirements.