Regulators in UK, Japan Issue Warnings on Binance Amid Crackdown on Unauthorized Crypto Exchanges
Top financial regulators in England and Japan have independently issued warnings on Binance for offering crypto exchange services to residents of the two countries without being registered with the regulators as required by law.
Japanese Regulator’s Warning
- Japan’s top financial regulator, the Financial Services Agency (FSA), issued a warning notice to Binance Holdings Ltd. and CEO Changpeng Zhao on Friday.
- The notice states that Binance has been providing crypto exchange services to Japanese customers without registration.
- Under Japanese cryptocurrency regulation, companies wanting to provide crypto exchange services in Japan must register with the FSA.
- This was not the first time Binance received such notice from the FSA. The regulator issued the same warning to Binance in March 2018.
- In May, the FSA issued a similar warning to Bybit Fintech Ltd. and its CEO, Ben Zhou.
British Regulator’s Warning
- Britain’s financial regulator, the Financial Conduct Authority (FCA), issued a consumer warning on Binance Saturday.
- The FCA states: “Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA … This firm is part of a wider group (Binance Group) … The Binance Group appears to be offering UK customers a range of products and services via a website, Binance.com.”
- The FCA emphasized: “No other entity in the Binance Group holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK.”
- Binance is not the only firm offering crypto exchange services to UK customers without registering with the financial authority. The regulator said:
Most firms advertising and selling investments in cryptoassets are not authorised by the FCA.
What do you think about the warnings on Binance by the two countries’ regulators? Let us know in the comments section below.