Binance and Changpeng Zhao sued for $200 million by British investors: Reuters

Global cryptocurrency exchange Binance and its founder Changpeng “CZ” Zhao have been named in a UK lawsuit seeking nearly $200 million (£150 million), according to a report. Report from Reuters.

The lawsuit alleges that the company offered complex and risky financial instruments, such as leveraged trading products, without regulatory approval. The lawsuit includes nearly 1,700 plaintiffs, according to the report, some of whom lost tens of thousands of dollars when offers were available in late 2019.

“Binance remains committed to its obligations to users and to operating in accordance with applicable law,” a company spokesperson said. ReutersAdding that she will defend herself against the lawsuit. A stock exchange representative did not immediately respond Decryption Request for comment.

Although claimants were able to access derivative products in late 2019, the UK Financial Conduct Authority (FCA) It announced a ban on cryptocurrency derivatives for retail clients In October 2020, considering that more advanced trading products are “not suitable” for retail clients.

Which The ban took effect in January 2021. An overview of the regulator’s cryptocurrency policy, published on Tuesday, highlighted that it recently lifted a ban on retail access to select exchange-traded securities (ETNs), but they remain in use. The bank is still reviewing its position regarding retail access to financial derivatives.

“Cryptoassets are high-risk investments and will remain high-risk under our regime,” the regulator wrote.

Binance, the leading cryptocurrency exchange by trading volume, is dealing with other issues in Europe as well. Last week the company Officially withdrew Crypto Asset Markets App (MicA) from Greece, a week later Reuters She stated that the request would be rejected.

The MiCA license will provide the company with the necessary regulatory approval to offer cryptocurrency services to users in EU countries starting July 1. Without a license, Binance will not be able to do this. After withdrawing from Greece, Binance said it would apply via another EU member state, although it did not specify which country.