In the past weeks, countries that include Japan, Canada, and the UK have begun cracking down on crypto exchange platforms. Binance is one exchange platform that is facing regulation crackdown in the three countries.
In the UK, Financial Conduct Authority (FCA) is warning consumers about Binance. FCA stated that Binance lacked the registration needed to sell crypto derivatives. The firm is also required to warn customers using its website beginning 30th June about their lack of registration.
FCA does not regulate crypto assets like Bitcoin and Ether, they however regulate derivatives based on crypto. FCA requires the crypto exchange to register as securities.
Binance tweeted that the FCA notice would have no direct impact on the services offered on Binance.com. The FCA ruling will not have an impact on UK residents.
In Canada, Ontario Securities Commission (OSC) has warned unregistered cryptocurrency exchanges. The OSC has taken legal actions against several crypto exchanges that include Poloniex, Bybit, and KuCoin.
OSC alleged that the crypto exchanges were offering securities and derivatives without proper registration. On 25th May, OSC alleged that Poloniex had failed to comply with securities law, despite offering securities and derivatives. OSC start legal action against KuCoin on 7th June after the cryptocurrency exchange failed to fulfill the registration requirement.
On 12th June, OSC alleged that Bybit had disregarded Ontario securities law by trading in securities and derivatives but without proper registration. On 25th June, Binance announced will be exiting Ontario jurisdiction and closing all Ontario-based users’ accounts by 31st December 2021.