FCA Penalizes Coinbase's CBPL £3.5 Million for Violating High-Risk Customer Restrictions

CB Payments Limited (CBPL) has been fined £3,503,546 by theFinancial Conduct Authority (FCA) for breaching a regulatory requirement. Thefine is a result of CBPL's failure to comply with a rule that prevented it fromoffering services to high-risk customers.

CBPL, part of the Coinbase Group, operates a globalcryptoasset trading platform. While CBPL itself does not handle cryptoassettransactions, it facilitates customer access to these transactions throughother Coinbase Group entities. The firm is not registered for crypto asset activities in the UK.

CBPL Breaches High-Risk Limits

In October 2020, CBPL agreed to a voluntary requirement(VREQ) after discussions with the FCA. This requirement was imposed due toconcerns about the effectiveness of CBPLs financial crime control framework.The VREQ prohibited CBPL from onboarding new high-risk customers until itimproved its control measures.

Despite this restriction, CBPL onboarded and providede-money services to 13,416 high-risk customers. Approximately 31 percent ofthese customers deposited about USD $24.9 million. These funds were used forwithdrawals and cryptoasset transactions through other entities in the CoinbaseGroup, totaling around USD $226 million.

We've fined CB Payments Ltd £3,503,546 for repeatedly breaching a requirement that prevented the firm from offering services to high-risk customers. #cryptoassets #CryptoTrading #FinancialRegulation https://t.co/etahpXO3q3

First FCA Fine under Regulations

The breaches occurred because CBPL did not properly design,test, implement, or monitor the controls necessary to ensure compliance withthe VREQ.

The firm failed to account for all potential onboarding methods anddid not adequately monitor compliance. As a result, repeated and significantbreaches went undetected for nearly two years.

Therese Chambers, Joint Executive Director of Enforcementand Market Oversight at the FCA, stated: The money laundering risks associatedwith crypto are obvious and firms must take them seriously. Firms like CBPLthat enable crypto trading need to have strong financial crime controls.

CBPL'scontrols had significant weaknesses, which is why the requirements wereimposed. However, CBPL repeatedly breached those requirements. This increasedthe risk that criminals could use CBPL to launder the proceeds of crime. Wewill not tolerate such laxity, which jeopardizes the integrity of our markets.

This enforcement action marks the first use of the FCA's powers under the Electronic Money Regulations 2011. CBPL agreed to resolve thematter and received a 30% discount on the fine for doing so.

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Crypto Exchange-Traded Products Get UK Regulatory Green Light

WisdomTree Inc. received the green light from the FCA to list a pair of physically-backed ETPs tracking Bitcoin and Ether on the London Stock Exchange.

The post Crypto Exchange-Traded Products Get UK Regulatory Green Light appeared first on Crypto Breaking News.

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LSE Opens Doors to Bitcoin and Ethereum ETN Applications

In a follow-up to the Stock Exchange Notice issued on March11, 2024, the London Stock Exchange (LSE) has disclosed its intention tocommence accepting applications for the admission to trading of Bitcoin andEthereum Crypto Exchange-Traded Notes (ETNs) from April 8, 2024.

Regulatory Hurdles: FCA Approval Crucial for LSE's CryptoETN Launch

The Exchange's decision is contingent upon the approval ofthe base prospectuses by the Financial Conduct Authority (FCA), which isnecessary for listing Crypto ETNs on the Main Market and the Official List ofthe FCA.Pending regulatory approval, the proposed date for the commencement of tradingfor these Crypto ETN securities is slated for May 28, 2024.

The LSE has strategically opted to launch the market forCrypto ETNs on May 28 to facilitate the maximum participation of issuers on theinaugural trading day. This choice of date factors in the necessity for issuersto meet the eligibility criteria outlined in the Crypto ETN factsheet.Additionally, it allows ample time for issuers planning to list securities onthe launch date to compile the requisite documentation to establish a CryptoETN program, including obtaining FCA approval for the base prospectus.

*LSE TO ACCEPT APPLICATIONS FOR BITCOIN, ETHEREUM ETN ADMISSION: BBG

Compliance Crucial: Standards for Participation in LSE'sCrypto ETN Debut

Issuers intending to establish a Crypto ETN program forlisting securities on the Main Market on May 28, 2024, are required to furnishthe Exchange with necessary information no later than April 15, 2024. Thisincludes a detailed letter outlining how the issuer and/or the Crypto ETN meetthe stipulated requirements as per the Crypto ETN factsheet, along with a draftof the base prospectus indicating the inclusion of disclosures aboutthese requirements.

However, issuers must adhere to Admission and DisclosureStandards to partake in the first day of trading of Crypto ETNs on May 28,2024. Failure to satisfy these standards will result in exclusion fromparticipation. Specifically, issuers will be ineligible if they fail todemonstrate compliance with the requirements outlined in the Crypto ETNfactsheet, submit their application for admission post the April 15, 2024deadline, or if their base prospectus fails to secure FCA approval by midday onMay 22, 2024.

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UK Embraces Crypto Innovation with Groundbreaking Financial Services Act

The UK government has taken a bold step forward in the financial services sector, embracing the dynamic world of cryptocurrency and blockchain technology with the passing of the Financial Services and Markets Act 2023. (Read More)

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UK financial watchdog to crypto industry: ‘Let’s work together’

The United Kingdom’s financial regulator, the Financial Conduct Authority (FCA), wants to work together with crypto companies to develop a regulatory framework for the industry. On April 25, FCA Executive Director Sarah Pritchard spoke at London’s City Week conference highlighting the need for cooperation on crypto regulations. “We want industry’s input to make sure we [...]

The post UK financial watchdog to crypto industry: ‘Let’s work together’ appeared first on Crypto Breaking News.

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FCA Cracks Down On Unregistered Crypto ATMs

What– the UK financial watchdog, Financial Conduct Authority (FCA), cracks down on unregistered crypto automated teller machines (ATMs) Why– This comes as the financial regulator [...]

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FCA Seeks Crypto Firms' Preparedness for Upcoming Promotions Regime

<p>The UK's financial market supervisor, the <a href="https://www.financemagnates.com/terms/f/financial-conduct-authority-fca/" class="terms__main-term" id="4c85a54d-15e0-4e44-a214-8c55f71cb286" target="_blank">Financial Conduct Authority (FCA</a>), announced on Monday that all local and overseas <a href="https://www.financemagnates.com/cryptocurrency/cryptocurrency-fraud-in-uk-rises-by-32-to-270m/" target="_blank" rel="follow">crypto companies marketing to UK consumers</a> must comply with the country's upcoming new financial promotions regime.</p><p>FCA Warns "Robust Action" for Breaches</p><p>The financial market watchdog ordered cryptic companies to prepare for the upcoming rules. Additionally, the regulator warned of "robust action" for the promotional rules breaches, which will include takedowns of websites that are in violation, issuing public warnings, and enforcement action.</p><p>"Acting now will help ensure they can continue to legally promote to UK consumers. We encourage firms to take all necessary advice as part of their preparations," the FCA stated.</p><p>Initially, the UK proposed to bring legislation around the promotions of specific crypto assets within the FCA's remit with a consultation response published in January 2022. The UK government issued a <a href="https://www.financemagnates.com/cryptocurrency/uk-moves-to-regulate-crypto-for-better-consumer-protection/" target="_blank" rel="follow">consecutive policy statement </a>on 1 February 2023 on its approach to crypto asset financial promotions <a href="https://www.financemagnates.com/terms/r/regulation/" class="terms__secondary-term" id="341d154e-1396-4d12-a357-4837e79c4146" target="_blank">regulation</a>.</p><p>Check out the FMLS22 session on "Digital Assets’ Marketing under a Magnifying Glass."</p><p>Four Routes of Crypto Promotions</p><p>The new proposed regime will allow the promotion of crypto assets to UK consumers under four categories: it should be communicated by an FCA-authorised person, the FCA must approve any unauthorized person promoting crypto assets, crypto businesses registered under the MLRs with the FCA must promote services, and crypto companies qualified under a Financial Promotion Order can promote services.</p><p>Without following these four specified routes, crypto assets promotions in the country would be a criminal offence punishable by up to 2 years imprisonment.</p><p>Moreover, the FCA clarified that any company authorized under the Electronic Money Regulations or the Payment Services Regulations would be considered "authorized" for running crypto asset promotions.</p><p>"We will publish our final rules for crypto asset promotions once the relevant legislation has been made. Subject to any changes in circumstances, we expect to take a consistent approach to crypto assets to that taken in our new rules, in place from 1 Feb 2023, for other high-risk investments. This would mean firms being required to use specific risk warnings and positive frictions (such as a 24-hour cooling off period) in their consumer journeys, in addition to the overarching requirement that their promotions are clear, fair and not misleading," the FCA stated.</p><p>Most recently, the FCA revealed that it <a href="https://www.financemagnates.com/fintech/uk-regulator-clamps-down-on-1400-more-rogue-financial-ads-in-2022/" target="_blank" rel="follow">rejected 8,582 financial promotions in 2022</a>, seeking their removal or amendment. Furthermore, it published over 1,800 scam alerts last year to protect investors against fraudsters.</p> This article was written by Arnab Shome at www.financemagnates.com.

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UK Is Becoming The China Of Europe-Find Out Why

In recent months, crypto platforms with U.S. operations, including, Wirex and B2C2, withdrew their application to register with the United Kingdom (UK) financial service watchdog [...]

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TP ICAP Gains UK Registration for Institutional Crypto Exchange

<p>TP ICAP’s wholesale exchange for crypto assets, Fusion Digital Assets, has registered with the <a href="https://www.financemagnates.com/terms/f/financial-conduct-authority-fca/" target="_blank" id="4c85a54d-15e0-4e44-a214-8c55f71cb286_1" class="terms__main-term">Financial Conduct Authority (FCA</a>), allowing the platform to operate in the United Kingdom.</p><p>Announced on Thursday, TP ICAP is yet to launch its crypto exchange services though it <a href="https://www.financemagnates.com/institutional-forex/tp-icap-to-launch-crypto-trading-services-for-institutions/" target="_blank" rel="follow">confirmed the upcoming services in mid-2021</a>. It will cater to institutional market participants only and will be operated by Tullett Prebon (Europe) Limited.</p><p>“Despite growing demand from our traditional client base, until now, the wholesale digital assets market has lacked the credible infrastructure and assurance necessary for them to allocate capital. Fusion Digital Assets addresses this need,” said TP ICAP Group’s Co-Head of Digital Assets, Duncan Trenholme.</p><p>“Its distinct attributes – namely a segregated model, TP ICAP’s track record of operating venues, and our means to distribute – are well recognized and trusted by institutional market participants.”</p><p>An Institutional Platform</p><p><a href="https://www.financemagnates.com/tag/tp-icap/" target="_blank" rel="follow">TP ICAP</a> is using its proprietary OTC electronic platform, Fusion, which will offer non-custodial services for order matching and trade <a href="https://www.financemagnates.com/terms/e/execution/" target="_blank" id="60010adb-9e25-4bff-9822-c9210deec853_1" class="terms__secondary-term">execution</a> with cryptocurrencies. In addition, it partnered with Fidelity Digital Assets for custodial services.</p><p>Known for being the largest inter-dealer broker, TP ICAP’s entry into the <a href="https://www.financemagnates.com/cryptocurrency/news/tp-icaps-crypto-platform-adds-jane-street-and-virtu-as-liquidity-providers/" target="_blank" rel="follow">digital asset space</a> would provide legitimacy in the crypto market when it is reeling with controversy. It gained the license when FTX, once a major cryptocurrency exchange, collapsed within days when the shady business practices of its Founder and former CEO, Sam Bankman-Fried, surfaced.</p><p>The extension of the FCA’s authority over the UK’s cryptocurrency market has <a href="https://www.financemagnates.com/cryptocurrency/news/cryptocom-secures-regulatory-approval-from-fca/" target="_blank" rel="follow">mandated all crypto businesses </a>operating in the country to register with the regulator. However, the registration process that started before the pandemic remains slow. FCA’s CEO, Nikhil Rathi, recently revealed that around 85 percent of crypto firms failed FCA’s registration process.</p><p>“Over time, we believe blockchain will lead to the tokenization of traditional asset classes. This will result in a more efficient, automated, and risk-mitigated trading and settlement process for financial markets. Fusion Digital Assets positions us well to grasp the opportunities that this change will bring,” Trenholme added.</p> This article was written by Arnab Shome at www.financemagnates.com.

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The FCA Is Introducing New Guidelines on Promoting High-Risk Investments

<p>The Financial Conduct Authority (FCA) is introducing <a href="https://www.fca.org.uk/news/press-releases/fca-clamps-down-marketing-high-risk-investments-consumers" target="_blank" rel="nofollow">new guidelines</a> for promoting high-risk investments. While crypt is classified as high-risk, the new rules will not apply to the promotion of crypto assets.</p><p>The FCA is waiting for the UK government's decision on how to legislate <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/" target="_blank" id="b091101e-6e02-4b36-aa0e-7c972dfdd6ed_1" class="terms__main-term">cryptocurrencies</a> but highlights similar rules will apply to crypto-related products. The new UK PM will only be announced on 5 September 2022.</p><p>Companies will be required to clarify the risks in investing in an instrument and cannot offer incentives such as referring a friend, which is banned under the new rules. 4,226 ads were amended or withdrawn following the FCA's intervention.</p><p>Sarah Pritchard, the Executive Director, said: "We want people to be able to invest with confidence, understand the risks involved, and get the investments that are right for them which reflect their appetite for risk.</p><p>"Our new simplified risk warnings are designed to help consumers better understand the risks, albeit firms have a significant role to play too. Where we see products being marketed that don’t contain the right risk warnings or are unclear, unfair or misleading, we will act. </p><p>"This is even more important now because increases in the cost of living could prompt people to chase higher investment returns which may prove risky."</p><p>The FCA is asking for feedback on its new rules by 10th October 2022. The final rules will be introduced at the beginning of 2023.</p><p>Enhancing the Client's Journey</p><p>The FCA is anticipating that 300 firms will be affected by its new rules in the crypto space, which will in turn affect over 2 million consumers/security holders.</p><p style="" class="text-align-center">source: <a href="https://www.fca.org.uk/publication/consultation/cp22-2.pdf" target="_blank" rel="nofollow">FCA</a></p><p style="" class="text-align-left">The FCA wishes to enhance the risk warnings. Inducements to invest (such as refer-a-friend), to be banned, and personalized risk warning pop-ups for new investors with the company must be displayed.</p><p style="" class="text-align-left">Companies will be required to regularly check the <a href="https://www.financemagnates.com/terms/c/compliance/" target="_blank" id="569f58ee-534c-44f0-a7cd-f55b0f9a2b2a_1" class="terms__secondary-term">compliance</a> of approved promotions, ensuring they are in line with the FCA. Evidence declarations will also be required.</p><p style="" class="text-align-center">source: <a href="https://www.fca.org.uk/publication/consultation/cp22-2.pdf" target="_blank" rel="nofollow">FCA</a></p><p style="" class="text-align-left">Below is an example of how the new rules are implemented. The 24hr cooling period is to prevent any irrational decisions that are often emotionally driven.</p><p style="" class="text-align-left">If a retail investor is lured by high returns due to his financial conditions, the cooling period may improve the decision-making process from the consumer's angle.</p><p style="" class="text-align-center">source: <a href="https://www.fca.org.uk/publication/consultation/cp22-2.pdf" target="_blank" rel="nofollow">FCA</a></p><p style="" class="text-align-left">Furthermore, the UK regulator will ban mass marketing to retail investors for Non-Mass Market Investments (NMMI). Mini-bonds or pooled investments in a fund that has not been authorized by the FCA are considered as NMMI.</p><p>All of the new rules are available on the FCA's <a href="https://www.fca.org.uk/news/press-releases/fca-clamps-down-marketing-high-risk-investments-consumers" target="_blank" rel="nofollow">website</a>.</p> This article was written by Matti Williamson at www.financemagnates.com.

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Bank of England Calls for More Regulation as U.K. Crypto Firms Express Frustration With Current Rules

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BlockFi Gets Bermuda Business License to Expand Its Global Operations Footprint

On January 24, BlockFi International Limited, a cryptocurrency financial services company, announced that it had obtained a Bermuda Subsidiary class F digital assets business license from the Bermu...

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PayPal To Facilitate UK Customers With Cryptocurrency Trading Feature

PayPal users with accredited identities will start accessing cryptocurrency trading soon. However, cryptocurrency transactions for its business account are not supported yet. Starting from this week, U.K residents will have initial access to buying, holding, and selling cryptos via PayPal. This development will make a remarkable milestone for a firm that started providing digital asset services within one year. PayPal is an American multinational financial technology company that operates an online payments system. It’s a global payment provider with services accessed in most countries that support online money transfers. PayPal serves as an electronic alternative to traditional payment methods such as checks and money orders. Related Reading | 37% Of U.S. Investors Decline To Liquidate Cryptocurrency Assets in Bearish Situations On Sunday, the popular payment provider declared its intent to allow U.K customers access to cryptos. The cryptos are Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC), and Bitcoin (BTC). Of course, you can always access them via mobile app or website. The Sunday announcement marked PayPal’s first expansion of crypto services outside the U.S and was initially launched last year November. PayPal Aims To Boost Cryptocurrency Exposure In U.K. Jose Fernandez da Ponte cited money digitization during COVID-19 as one of the main motivations for embracing crypto. Jose Fernandez is a high-ranked executive for PayPal’s cryptocurrency division. He added that; “Our expertise on global digital payments provides us with the opportunity and responsibility of helping U.K. residents to explore cryptocurrency. This adds to our businesses and consumers knowledge combined with various security and compliance controls.” By making its crypto services available to U.K. residents, the online payment giant plays a role in increasing the country’s cryptocurrency exposure. After a sudden pullback, the market is back on bullish track | Source: Crypto Total Market Cap on TradingView.com According to reports, the payment giant has the highest penetration among other European countries in U.K.with over 2 million active users monthly. Rumors on PayPal’s crypto expansion proposal have been in circulation since the past month after Dan Schulman’s speech. Dan Schulman’s CEO had earlier informed investors on the soon coming PayPal services to the U.K. residents. Reports further show that PayPal’s eye development in Defi is a precursor to integration plans in the future. The Financial Conduct Authority (FCA) on regulation in the U.K. goes down on some crypto exchanges. These are exchanges that have not met their registration demands. Related Reading | Facebook Officials Claim Novi Received Approval From Major U.S. States For example, FCA shuttered the operations of Binance U.K. after warning them against providing regulated trading activity in the country this summer. PayPal’s da Pote Jose gave assurance that his company will keep working with U.K. regulators and others to roll out its cryptocurrency services. Featured image from Pixabay, chart from TradingView.com

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UK Crypto Firms Might Come under Prudential Rules as FCA Designs Policy

The UK Financial Conduct Authority (FCA) in its latest annual report for the year ended March 31, 2023, said it has continued to design prudential requirements for firms that are carrying out activities involving crypto assets. However, the British watchdog noted that it will only initiate public consultation on the rules after it gets the backing of the government and lawmakers.

Learn about our progress and key achievements in the first year of our 3-year strategy. #FinancialServices #ConsumerDuty https://t.co/0HIEV7Ip3v pic.twitter.com/iOUNg7vZa0

New Prudential Regime Marks First Year

Prudential requirements are rules that are designed to ensure the financial stability of establishments in a country's financial markets. These requirements typically focus on capital adequacy, liquidity, and risk management.

In January last year, the Investment Firms Prudential Regime (IFPR), the FCA's new prudential requirements for investment firms regulated under the Markets in Financial Instruments Directive (MiFID) law, which the UK adopted after Brexit, came into force. Under the new regime, the FCA improved its prudential expectations to focus not only on the risks firms face but also on those they can pose to consumers and financial markets.

What changes lie ahead for #BIPRU firms? We examine the new #FCA prudential regime for #investmentfirms. Read the full client alert here: https://t.co/D4OiNaimTy #regulatorycompliance pic.twitter.com/3HDeAAGz8k

In the annual report released today (Friday), FCA noted that the IFPR generated significant results during its first full year.

“We received new reporting from 3,500 firms providing a clearer, more objective understanding of their financial resilience,” FCA stated. “We have reviewed the processes of 53 organisations across 17 groups, resulting in us advising firms to hold over £5 billion of capital requirements and over £8 billion of liquidity in aggregate.”

CFD Brokers and Prudential Requirements

Furthermore, FCA during the recent fiscal year focused on reviewing compliance with its prudential requirements among other categories of firms such as contracts for difference (CFD) providers, wealth managers, and payment services firms. This effort “resulted in an increase of £19.2 million in capital requirements and £208.7 million in liquidity requirements for these firms,” FCA noted in the annual report.

In other related news, the British watchdog recently found 'gaps in surveillance' among CFD providers in the country. Specifically, FCA discovered weak monitoring of market manipulation and abuse of non-equity asset classes among derivatives brokerages in the country.

Additionally, the regulator found that only 61% of CFD providers in the UK will fully comply with its Consumer Duty requirements for products and services open for sale and renewal by the time the July 31, 2023, deadline elapses. The Duty sets higher and more precise standards of consumer protection across the European country’s financial services industry.

IBKR adds Taiwan stocks; multi-chart feature on Match-Trader; read today's news nuggets.

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UK Moves Closer to Crypto Laws with Parliament’s Upper House Approval

The United Kingdom is getting closer to treating cryptocurrency as a regulated activity, with promotion of digital assets closely monitored. On Monday, lawmakers from the Parliament’s upper chamber, House of Lords, ratified the Financial Services and Markets Bill (FSMB).

House of Lords Approves Crypto Laws

FSMB outlines the UK’s economic strategy post-Brexit. The bill originally proposes to regulate stablecoins under the payments industry. However, provisions to deal with crypto as a regulated activity and to oversee crypto ads were added in subsequent amendments.

The approval means that the bill, which was sanctioned by the lower chamber House of Commons in October last year, is now set for the final stages. This stage includes a last reading by both chambers, with royal assent granted by King Charles III once both chambers agree on final provisions.

As part of efforts to regulate the cryptocurrency industry in the UK, His Majesty’s Treasury recently consulted with the public on proposed regulations as part of steps to prepare draft provisions on regulating the crypto industry. The rules propose measures to offer UK consumers better protection while allowing the crypto industry to grow within a regulated ecosystem.

In April, Andrew Griffith, Economic Secretary to the UK Treasury told CNBC that crypto-specific regulation could come into force in the next one year. He noted that the country is seeking to position itself as a “global hub for crypto asset technology.”

Eyes on the Crypto Industry

Meanwhile, a group of lawmakers recently put forward 53 recommendations for crypto regulation. The All-Party Parliamentary Group (APPG) for Crypto and Digital Assets Group also sought the appointment of a dedicated official to oversee the regulatory process.

Finance Magnates reported that pro-crypto lawmakers divided the recommendations into several segments, including the country's approach toward crypto regulations, the role of the UK regulations, the central bank digital currencies, and risk in consumer protection and economic crimes.

In a related development, the UK Financial Conduct Authority is also making plans to enforce news rules around cryptocurrency marketing and advertisings from October 8. The Treasury previously announced it was introducing a time-limited exemption that will enable crypto firms authorized under the FCA’s anti-money laundering regime to issue their promotional materials before the new regulatory regime takes off.

TipRanks wins fintech award; ex-Scope Markets' exec at Titan FX; read today's news nuggets.

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Binance Markets Limited Deregisters with the UK's FCA

The registration of Binance Markets Limited (BML), the UK subsidiary of the global crypto exchange, with the Financial Conduct Authority (FCA) has officially been withdrawn at the company's request. Now, none of the Binance entities is holding any operational approvals in the UK.

An End to Binance's UK Ambitions?

"Binance Markets Limited has recently submitted a cancellation request of their FCA permissions which was completed on 30 May 2023," an FCA update stated. "Following the completion of the cancellation of permissions, the firm is no longer authorized by the FCA. No other entity in the Binance Group holds any form of UK authorization or registration to conduct regulated business in the UK."

The UK regulator flagged the local subsidiary of Binance in mid-2021, which triggered an array of similar warnings by several other financial market watchdogs globally. The FCA initially imposed restrictions on Binance Markets Limited, prohibiting the firm from conducting any regulated activity in the country.

A Non-Operational Entity

Binance's Sub-Regional Manager for Growth in the UK and Europe, Ilir Laro, pointed out that the cancellation of Binance Markets Limited's registration did not have an operational impact as the unit never conducted any business.

"BML was successfully acquired back in 2020 by Binance Group, intended to launch a regulated business in the UK. This attempt was not successful, however, and has since then remained dormant since its acquisition," Laro noted.

"To clarify, BML has never conducted any type of regulated business in the UK. In keeping with the FCA's firms guidance on canceling unused FCA permissions, BML is now no longer authorized by the FCA."

Earlier, a Binance executive revealed the exchange's plans to move towards the UK following the regulatory backlash in the US. The UK unit of the exchange is now focusing on the newly amended Financial Promotions Order, which comes into effect on October 8, 2023, a mandatory rule to operate in the country.

Meanwhile, Binance is facing two civil lawsuits in the US, one brought by the Securities and Exchange Commission (SEC) and the other by the Commodity Futures Trading Commission (CFTC).

Following Binance's troubles with the two top US regulators, the exchange is also reducing its European presence. It has deregistered its regulated subsidiary in Cyprus and also decided to exit the Netherlands as it failed to obtain a virtual asset service provider (VASP) license from the Dutch regulators. The regulated French subsidiary of Binance is also reportedly facing a probe.

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Binance Deregisters in the UK, Expediting Its EU Exodus

The registration of Binance Markets Limited (BML), the UK subsidiary of the global crypto exchange, with the Financial Conduct Authority (FCA) has officially been withdrawn at the company's request. Now, none of the Binance entities is holding any operational approval in the UK.

An End to Binance's UK Ambitions?

"Binance Markets Limited has recently submitted a cancellation request of their FCA permissions which was completed on 30 May 2023," an update from the FCA stated. "Following the completion of the cancellation of permissions, the firm is no longer authorized by the FCA. No other entity in the Binance Group holds any form of UK authorization or registration to conduct regulated business in the UK."

The UK regulator flagged the local subsidiary of Binance in mid-2021, which triggered an array of similar warnings by several other financial market watchdogs globally. The FCA initially imposed restrictions on Binance Markets Limited, prohibiting the firm from conducting any regulated activity in the country.

A Non-Operational Entity

Binance's Sub-Regional Manager for Growth in the UK and Europe, Ilir Laro, pointed out that the cancellation of Binance Markets Limited's registration did not have an operational impact as it never conducted any business.

"BML was successfully acquired back in 2020 by Binance Group, intended to launch a regulated business in the UK. This attempt was not successful, however, and has since then remained dormant since its acquisition," Laro noted.

"To clarify, BML has never conducted any type of regulated business in the UK. In keeping with the FCA's firms guidance on canceling unused FCA permissions, BML is now no longer authorized by the FCA."

Earlier, a Binance executive revealed the exchange's plans to move towards the UK following the regulatory backlash in the US. The UK unit of the exchange is now focusing on the newly amended Financial Promotions Order, which is a mandatory rule to operate in the country. This comes into effect on October 8, 2023.

Meanwhile, Binance is facing two civil lawsuits in the US, one brought by the Securities and Exchange Commission (SEC) and the other by the Commodity Futures Trading Commission (CFTC).

Following Binance's troubles with the two top US regulators, the exchange is also reducing its European presence. It has deregistered its regulated subsidiary in Cyprus and decided to exit the Netherlands as it failed to obtain a virtual asset service provider (VASP) license from the Dutch regulators. The regulated French subsidiary of Binance is also reportedly facing a probe.

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Binance Claims Commitment to U.K. Plan Remains, Despite FCA Deregistration

The firm has canceled its registration with the United Kingdom's Financial Conduct Authority.

Continue reading at DailyCoin.

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UK Goes After Crypto ‘Finfluencers:’ FCA Cracks Down on Promotions

The FCA's new social media guidance is set to change the landscape of crypto promotions in the UK.

Continue reading at DailyCoin.

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Meme Coins In UK Watchdog’s Sights as It Cracks Down on Social Media Promotions

Meme coins are in the sights of the UK’s financial regulator as it prepares a crackdown on the promotion of financial products on social media. [...]

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