Britain has banned Binance, the world’s leading cryptocurrency exchange over concerns about rising levels of crime.
Regulator The Financial Conduct Authority (FCA) has ruled that the firm cannot conduct any "regulated activity" in the UK.
The FCA has also issued a warning about its website, Binance.com, and adverts promising high returns on crypto-based investments.
Britain’s action follows action by other regulators against the firm. Japan issued a warning to consumers two days ago over Binance, while authorities in the US and Germany had both expressed concerns recently.
Crypto crime rising by 124% every year in UK, data shows
The firm also pulled out of Ontario, Canada at the weekend after it was accused of failing to comply with regulations there.
Binance is based in the Cayman Islands, but has affiliates in London and elsewhere around the world.
Its website arm is an exchange for a wide range of cryptocurrencies and also products such as futures and digital wallets.
In a statement, the FCA said UK arm Binance Markets Ltd is not currently permitted to undertake any regulated activities without prior written consent.
The regulator added that while cryptocurrencies such as bitcoin and ether are themselves not regulated, derivative products such as futures contracts and crypto-assets such as security tokens or e-money tokens do come under its remit.
Binance told the BBC that the FCA notice has no "direct impact" on the services it provides from its website Binance.com.
"BML is a separate legal entity and does not offer any products or services via the Binance.com website," a spokesman told the broadcaster.
Crypto investments could eclipse traditional stocks and shares ISAs, warns analyst
Britain has steadily been tightening the rules surrounding crypto.
Since January 10, all UK-based crypto firms have had to comply with Anti-Money Laundering and Counter-Terrorist Financing laws and register with the FCA in order to operate legally.
Last week, Mark Steward, the FCA’s head of enforcement, said more than 100 cryptocurrencies had yet to comply and he likened the growth in crypto to the Dutch tulip bubble in 1630 and said the growth was being driven by fear of missing out.
In a statement, the FCA said: “A significantly high number of crypto asset businesses are not meeting the required standards under the money laundering regulations, which has resulted in an unprecedented number of businesses withdrawing their applications.
“The action taken today on Binance Markets Limited has been in train for some time.”
Reports have suggested the Metropolitan Police is pushing for cryptocurrency to treated in a similar way to cash crimes with assets of suspected offenders frozen and tighter regulations.