Binance Dismisses Ties with UK-Based Binance LTD
- Binance recently canceled its UK registration with the FCA.
- The crypto exchange also issued a cease-and-desist note to a fraudulent Nigerian company operating under its name.
- Binance has withdrawn its presence from Cyprus and the Netherlands in recent days.
For the second time in a week, cryptocurrency exchange Binance has issued a cease-and-desist order to a fake company operating under its name. The crypto exchange took to Twitter to announce that it had issued a notice to UK-based Binance Ltd. Binance clarified that it was not affiliated with Binance LTD and called it “a scam company.”
Binance’s disclaimer came in response to a Reddit post that suggested that the exchange “has a utility closet listed as an office in the UK.” The supposed affiliate, Binance Ltd., reportedly operates a registered office in Mildenhall, Suffolk. The government’s company register, Companies House, says Binance Ltd. shares an office location with more than 2,400 organizations.
As of this writing, the specifics surrounding Binance Ltd. are still unknown. However, the UK’s Financial Conduct Authority has previously issued public warnings about the existence of cryptocurrency “clone” businesses. Clone companies involve fraudulent organizations using the details of legitimate companies to persuade their victims.
Aside from mounting regulatory pressures, Binance has had to distance itself from alleged fake companies operating under its brand. There are currently several firms in the UK operating under the Binance brand. Binance recently issued a similar cease-and-desist order to a supposed Nigerian affiliate reportedly soliciting local investors.
Binance CEO Changpeng Zhao took to Twitter to brand the company as a “scammer entity.” The news came as Nigerian regulators claimed Binance had operated illegally in the West African nation and was not registered with the appropriate authorities. Interestingly, the operators of Binance Nigeria Limited allegedly confirmed that they had planned to sell the company to Binance.
Meanwhile, Binance Global hasn’t had the best of times in recent weeks. The company has recently withdrawn its presence from the Netherlands, Cyprus, and Canada. In addition, the crypto exchange was sued by the US Securities and Exchange Commission for selling securities and misusing customer funds.
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