In short
- Changpeng “CZ” Zhao and Binance have been named in a lawsuit seeking nearly $200 million in the UK.
- The court alleges that the company issued risky financial products without a valid license.
- About 1,700 British investors were listed as complainants.
Global crypto exchange Binance and its founder Changpeng “CZ” Zhao have both been named in a UK lawsuit seeking around $200 million (£150 million), according to report from Reuters.
The lawsuit alleges that the company provided financial and risky equipment, such as low-cost products, without a valid license. The lawsuit includes about 1,700 plaintiffs, according to the report, some of whom lost thousands of dollars when the offering was available at the end of 2019.
“Binance remains committed to its responsibility to its users and to operating in accordance with applicable laws,” a company spokesperson said. Reutersadding that it will defend itself against this charge. A representative of the exchange did not immediately respond Decrypt’s ask for feedback.
Although the complainants had access to information from the end of 2019, the UK Financial Conduct Authority (FCA) announced a ban on crypto derivatives for retail customers in October 2020, in consideration of the highest quality products “unsuitable” for retail customers.
That The ban went into effect in January 2021. An overview of the regulator’s crypto policy published on Tuesday showed that it recently lifted the ban on trading options for exchange-traded notes (ETNs), but with it is still looking at its position in relation to trading opportunities in derivatives.
“Cryptoassets are high risk investments and will remain high risk under our supervision,” the regulator wrote.
Binance, the leading crypto exchange and trading volume, is also facing some challenges in Europe. Last week, the company he came out officially its Markets in Crypto Assets (MicA) project from Greece, a week later Reuters said that the request would be rejected.
MiCA’s approval would give the company the regulatory approval needed to provide crypto services to users in EU countries starting July 1. Without the approval, Binance will not be able to do so. After leaving Greece, Binance said it would be used through other EU countries, although it did not specify which ones.
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