The Financial Conduct Authority has recognized in a supervisory notice that Binance, the world’s largest cryptocurrency exchange, is unable of being “effectively monitored” due to its weak engagement.
The FCA believes that the Firm cannot adequately be overseen based on its involvement to date. This is especially concerning given the Firm’s affiliation with a global Group that sells sophisticated and high-risk financial products that put consumers in danger.
The company’s London-based affiliate, Binance Market Limited, has failed to answer to certain basic information demands.
Binance, in particular, has failed to reveal essential data about its worldwide business model, products, or even the names and functions of its global companies.
Binance purchased EddieUK Limited, an FCA-regulated company, to launch a regional exchange in the United Kingdom. The corporation tried to get the coveted registration on its own but had to withdraw its application early this year.
IN JUNE, the BML business was forbidden from performing regulated services in the United Kingdom, prompting certain large British banks, including Barclays, to prohibit transfers to the exchange.
Binance Group received similar warnings from some regulators around the world, prompting the exchange to take a proactive approach to compliance.
Binance has met “all areas of the requirements,” according to a report published on the British watchdog’s website on August 25.
According to documents obtained by the Financial Times, the exchange declares itself to be an FCA-regulated company, which means it must adhere to the watchdog’s regulations.