FCA's ban on Binance

The FCA has banned Binance Markets Limited from undertaking any regulated activities in the UK, and in so doing, took the opportunity to warn consumers to be wary of adverts online and on social media promising high returns on investments in cryptoasset or cryptoasset-related products. Consumers are reminded that most firms advertising and selling investments in cryptoassets are not authorised by the FCA and that consumers investing in certain cryptoassets will not have access to the FOS or the FSCS if something were to go wrong. 

Whilst the FCA has not provided an explanation as to why it has issued this ban, it comes at a time when regulators globally are scrutinising cryptoassets. It is also worth noting that Binance Group apparently acquired BML in May 2020 and, according to statements Binance has been making, it has not yet launched its UK business or used its FCA regulatory permissions. Further, Binance has been making clear to consumers that the ban "has no direct impact on the services provided by Binance.com", a separate legal entity.