Binance, the world’s biggest cryptocurrency exchange, has been issued a warning by the UK’s financial regulator.

The Financial Conduct Authority (FCA) has ruled that the firm cannot conduct any “regulated activity” in the UK.

It also advised people to be wary of adverts promising high returns on cryptoasset investments.

Binance said the FCA notice would have no “direct impact” on the services it provides from its website Binance.com.

Binance’s existing crypto exchange is not UK-based so despite the FCA ruling, there will be no impact on UK residents who use the website to purchase and sell cryptocurrencies.

The FCA does not regulate cryptocurrencies, but requires exchanges to register with them. Binance has not registered with the FCA and therefore is not allowed to operate an exchange in the UK.

The FCA move comes amid pushback from regulators around the world against cryptocurrency platforms.

Binance.com is an online centralised exchange that offers users a range of financial products and services, including purchasing and trading a wide range of digital currencies, as well as digital wallets, futures, securities, savings accounts and even lending.

Binance Group is currently based in the Cayman Islands, while Binance Markets Limited is an affiliate firm based in London. The firm has multiple entities dotted around the world and Binance Group was previously based in Malta.

The FCA said that Binance Markets Limited (BML), which is owned by Binance Group, is not currently permitted to undertake any regulated activities without the prior written consent of the FCA. It has until Wednesday to comply with the ruling.

The regulator also stressed that no entity in the Binance Group holds any form of authorisation, registration or licence to conduct regulated activity in the UK.

Controversies over Binance’s activities

This is not the first time that Binance has come under scrutiny by regulators over its global operations.

In the US, one of the firm’s entities – Binance Holdings – has been the subject of a probe by the US Securities and Exchange Commission (SEC), specifically by its officials dealing with money laundering and tax offences, according to Bloomberg.

The SEC issued a similar warning to US consumers in April about the platform.

On Saturday, Binance announced it was pulling out of Ontario, Canada, after the Ontario Securities Commission (OSC) accused it and several other crypto trading platforms of failing to comply with province regulations.

And on Friday, Japan’s Financial Services Agency (FSA) warned Binance for the second time in three years that it is operating in the country without permission.

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