Rahman Ravelli assess the significance of the Financial Conduct Authority taking action against the cryptocurrency exchange Binance

Rahman Ravelli wrote an article about the implications of the UK’s Financial Conduct Authority (FCA) banning Binance, the world's biggest cryptocurrency exchange.

With the FCA ruling that Binance cannot conduct any regulated activity in the UK, Rahman Ravelli explains what this may mean for those who may be looking to bring civil recovery actions. They also consider the response from Binance to the FCA’s stance.

The article states that while Binance has said it is happy to work with regulators and takes the issue of compliance seriously, this is not the first time the exchange has come under scrutiny. 

The United States’ Securities and Exchange Commission (SEC) has investigated Binance in relation to money laundering and tax offences and issued a warning to consumers. about it two months ago.

Binance was also one of a number of cryptocurrency exchanges accused by Canadian regulators of not complying with regulation. It has also been given warnings by Japan’s Financial ServicesAgency (FSA) for operating there while not having permission to do so. 

It remains to be seen exactly how Binance responds to the FCA’s action - and whether more regulators in other countries take action against it.

The article featured on Law360. (Subscription required)