It’s official. Binance Markets Limited (BML) has finally met all the requirements of the UK regulator, the FCA. However, there are signs that Binance may not be allowed to operate to its full potential just yet.
What’s actually happening between the FCA and Binance?
We reported just recently that Binance would not be allowed to conduct regulated activity in the UK. This caused a massive shock in the crypto scene, as Binance is currently the largest cryptocurrency exchange in the world.
Binance was quick to respond, stating that the announcement was simply about Binance Markets Limited: A Part of Binance Group, which is regulated by the FCA in the UK. According to Binance, BML is not the company offering products or services through www.binance.com.
According to Binance, the FCA’s decision does not affect the company’s services and nothing would change for its users.
Data directly from the FCA states that BML is now in compliance with all FCA requirements. The Aug. 25 supplement specifically states:
Binance complies with all aspects of the FCA’s requirements
There are still some unanswered questions. The FCA claims that BML still cannot engage in regulated activities in the UK and that the FCA register shows all the requirements that apply to BML.
But this FCA register states that BML is authorised for certain product types and activities.
This clearly contradicts the FCA’s statement that Binance is not permitted to carry on regulated activities. The status on the FCA register shows that Binance is indeed regulated. Here is a screenshot:
In short, BML has met the FCA’s requirements and can conduct some limited activities. Let’s take a closer look at those activities.
What Binance is and isn’t allowed to do in the U.K.
In one part, the FCA says that BML has fully complied with the FCA’s requirements. In another part, the FCA saysthat BML still cannot do business in the UK. Confusing, isn’t it? We’ll try to clear up this contradiction.
A more detailed search of the FCA register shows that BML is authorised to carry out the following activities:
- Advising on investments, apart from pension transfers and opt-outs.
- Arranging transactions in investments
- Dealing in investments as principal
- Agreements to enter into transactions involving investments
- carrying on regulated activities
And these are the activities that BML is not allowed to carry on in the UK:
- Borrowing money
- Use clients’ money to fund its business
However, it is heartening to know that Binance has complied with all the requirements of the FCA. Binance’s CEO also stated on Twitter that it is a positive move. Consequently, Binance users in the UK can be optimistic that the FCA might lift all restrictions against BML soon.