The FCA has published a first supervisory notice in respect of investment firm, Binance, one of the world’s largest crypto exchanges, which has subject to a well-publicised restriction on its activities in the UK. The supervisory notice confirms that Binance must not, without the prior written consent of the FCA, carry out any regulated activities for which it has Part 4A permission with immediate effect. It is also required to display notices on its website to this effect (amongst other requirements imposed on them by the FCA).
The FCA has acted with powers under section 55L(3) of the Financial Services and Markets Act 2000, and has provided the following reasons for its action against Binance:
- it has failed, during a period of at least 12 months, to carry on a regulated activity to which the Part 4A permission relates;
- it is failing, or is likely to fail, to satisfy the Effective Supervision Threshold Condition; and
- it is desirable in order to advance the FCA’s operational objective of securing an appropriate degree of protection for consumers.