The British are dissatisfied with the cryptocurrency exchange Binance and plan to take legal action against it

The cryptocurrency exchange Binance and its founder, Changpeng «CZ» Zhao, are facing a lawsuit in a British court. The plaintiffs are seeking nearly $ 200 million (£150 million) in damages, according to Reuters.

The lawsuit alleges that the company offered complex and risky financial instruments—including leveraged products—without proper regulatory approval. The list of plaintiffs includes about 1,700 British investors, some of whom lost tens of thousands of dollars when these products were available in late 2019.

A Binance spokesperson told Reuters that the company «remains committed to its obligations to users and to complying with applicable laws,» adding that the exchange will defend itself against the lawsuit. The company did not respond to a request for comment from Decrypt.

Although British customers gained access to derivatives products in late 2019, in October 2020, the UK’s Financial Conduct Authority (FCA) banned retail investors from trading crypto derivatives, deeming them «unsuitable» for a broad range of consumers. The ban took effect in January 2021. Recently, the regulator partially eased the restrictions by opening retail access to certain exchange-traded notes (ETNs), but the FCA’s position on derivatives remains unchanged. «Crypto assets are high-risk investments and will remain so under our regulation,» the regulator noted.

At the same time, Binance is facing serious challenges in the European market as well. Last week, the company officially withdrew its application for a MiCA (Markets in Crypto Assets) license in Greece—one week after Reuters reported on the impending rejection.

A MiCA license would have given Binance the right to provide crypto services to users in European Union countries starting July 1. Without it, the company is unable to do so. Following its withdrawal from Greece, Binance stated that it would submit an application through another EU member state, though it did not specify which one.