The Financial Conduct Authority (FCA) has issued a warning over the current accessibility of Binance to the UK’s payment network.
The body has retained skepticism over the major cryptocurrency platform’s role in the UK payment ecosystem, having previously halted all regulated activities in the region.
Latest warnings from the FCA come off the back of Binance’s collaboration with Paysafe, which will enable the firm to allow British users to efficiently deposit onto the app.
Following the decision, Binance stated: “We take our compliance obligations very seriously and work proactively and collaboratively with regulators.”
Furthermore, according to reports, some of the UK’s main banks are now taking steps to halt transactions to the app from their account. Nonetheless the warnings of the watchdog haven’t stopped UK consumers from engaging in crypto transactions.
It comes as the regulatory framework for digital currencies in the UK is continuing to evolve, as the government continues the process of setting out regulations in the region – including when it comes to cryptocurrency exchanges.
Off the back of last Summer’s ruling by the FCA, the body issued a statement outlining that UK consumers should ‘be wary of adverts online and on social media promising high returns on investments in cryptoasset or crypto asset-related products’.
It added: “Most firms advertising and selling investments in cryptoassets are not authorised by the FCA. This means that if you invest in certain cryptoassets you will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong.
“While we don’t regulate cryptoassets like Bitcoin or Ether, we do regulate certain cryptoasset derivatives (such as futures contracts, contracts for difference and options), as well as those cryptoassets we would consider ‘securities’ – find out more information.
“A firm must be authorised by us to advertise or sell these products in the UK – check our Register to make sure the firm is authorised. You can also check our Warning List of firms to avoid.”