The FCA has banned major cryptocurrency trading platform Binance Markets Limited from undertaking any regulated activity in the UK. 

Binance Markets Limited is part of Binance Group, a major global player in cryptocurrency trading.

The watchdog said that due to the imposition of requirements by the FCA, Binance Markets Limited is “not currently permitted to undertake any regulated activities without the prior written consent of the FCA.”

No other part of Binance Group holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK.

The regulator said that Binance Group appears to be offering UK customers a range of products and services via a website, Binance.com. The website has allowed consumers to invest in cryptoassets generally.

The FCA has urged consumers to be wary of online advertising and social media promising high returns on investments in cryptoasset or cryptoasset-related products.

The regulator points out that most firms advertising and selling investments in cryptoassets are not authorised by the FCA and this means that consumers are not covered by The Financial Ombudsman Scheme or the Financial Services Compensation Scheme in the event of problems.

While the FCA does not regulate cryptoassets such as Bitcoin or Ether, it does regulate certain cryptoasset derivatives (such as futures contracts, contracts for difference and options), as well as those cryptoassets considered securities.

In a statement today Binance said: "We are aware of recent reports about an FCA UK notice in relation to Binance Markets Limited (BML). BML is a separate legal entity and does not offer any products or services via the Binance.com website.

"The Binance Group acquired BML May 2020 and has not yet launched its UK business or used its FCA regulatory permissions. The FCA UK notice has no direct impact on the services provided on Binance.com. Our relationship with our users has not changed.

"We take a collaborative approach in working with regulators and we take our compliance obligations very seriously. We are actively keeping abreast of changing policies, rules and laws in this new space."