- Binance is the world’s largest cryptocurrencies exchanges
- FCA had ordered the exchange to cease all regulated activities in the U.K.
- FCA said Binance Group does not hold necessary permits to operate in the country
Binance clients will have to bid adieu to faster payments after increased regulatory pressure in the U.K. Binance has suspended the fiat ramp for customers in Britain amid a regulatory crackdown.
Binance consumers in the U.K. will not be able to use the Faster Payments to withdraw British pounds (GBP) from the exchange.
A notice is running on the Binance website from Monday, June 28. The statement reads that British pounds (GBP) through the Faster Payments had been “suspended for maintenance,” according to the Financial Times.
Faster Payments is a very popular exchange platform
‘Faster payments’ is a payment provider whose services have been used by major banks to process near-instant payments. Faster Payments is a very popular platform for moving fiat currencies to and from the Binance exchange.
Binance is one of the world’s largest cryptocurrencies exchanges. A few days back, UK’snation’s Financial Conduct Authority, or FCA, had ordered the exchange to cease all regulated activities in the U.K.
Binance Group does not have permits to operate in the country-FCA
The financial watchdog in an announcement said that the exchange would not be permitted to do any regulated activity in the UKFCA further noted that no entity in the Binance Group holds any of the necessary permits to operate in the country.
FCA also warned persons or institutions investing in unauthorized exchanges. The FCA has not authorized those entities who are selling investments in crypto assets. It added that if anyone invests in such assets, he will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if there is fraud.
The FCA does not have any regulatory power on cryptocurrencies like Bitcoin (BTC) or Ether (ETH). However, it has the mandate to govern derivative trade, and this includes futures contracts and options. Digital assets are also considered to be securities, and therefore it comes under the FCA purview.
On Sunday, in its first response after the FCA order, Binance clarified that Binance Markets Ltd. is a separate legal entity and does not offer any products or services via the Binance.com website. It added that FCA UK notice has no direct impact on the services provided on http://Binance.com.
Binance exits the Canadian province of Ontario.
A day before the FCA UK order, Binance announced that it would be exiting the Canadian province of Ontario. Ontario is home to 15 million people, and it is one more major market from where Binance will be leaving. Binance has time till the end of the year to close out all active positions.
On Friday, Binance informed its users that Ontario had become a “restricted jurisdiction. It did not specify any reasons for the withdrawal. However, experts blame the sudden withdrawal of services by Binance to a sweeping crackdown on crypto exchanges conducted by the Ontario Securities Commission, OSC.
The crackdown by the Ontario Securities Commission was focused on the parent companies of Kucoin and Poloniex for allegedly violating securities laws. However, the Commission had said earlier that it would also be holding hearings against By bit for similar violations.