U.K. Regulators: We Can’t Supervise Binance Properly

2021-09-03 23:51:36 Primitive Reading

In reference to the world’s largest crypto exchange, Binance, the U.K. financial regulator has stated that “based upon the firm’s engagement to date, the FCA considers that the firm is not capable of being effectively supervised,”

On August 25, Reuters reported that the regulator is concerned about Binance’s global reach and range of products which it considers as a “significant risk”.

“This is of particular concern in the context of the firm’s membership of a global group which offers complex and high-risk financial products, which pose a significant risk to consumers.”

Binance Still in The Doghouse

In June, the FCA prohibited Binance from conducting any regulated activity in the United Kingdom and imposed several requirements on the platform.

Later the same month, Binance responded stating that nothing has changed because Binance Markets Limited is not the entity offering crypto derivatives in the U.K. The FCA rules do not apply to the full spectrum of Binance Group firms which are global and beyond its reach.

As reported by Reuters, a Binance spokesperson said that Binance Markets Limited has fully complied with all the watchdog’s requirements and it continues to engage with the FCA to resolve any outstanding issues that may exist.

“As the cryptocurrency ecosystem industry continues to grow and evolve we are committed to working with regulators and policymakers to develop policies that protect consumers, encourage innovation, and move our industry forward,”

The regulator wants more though, having sent two requests for information about Binance’s wider global business model and its synthetic stock tokens. It stated, “the FCA considers that the firm’s responses to some questions amounted to a refusal to supply information.”

As reported by CryptoPotato, Binance is already complying with regulations within the jurisdiction of the United Kingdom but eyes are now on the Cayman Islands-registered global company.

It remains to be seen whether regulators in individual countries have any authority over companies that are based in other countries.

BNB Price Update

Binance’s native token, BNB, has made 2.8% over the past 24 hours to trade at $493 at the time of writing. It has performed well during this market rally, gaining 23% over the past week and 62% over the past month.

BNB is currently down 28% from its all-time high of $686 on May 10.

Disclaimer: This specification is preliminary and is subject to change at any time without notice. Amazon Finance assumes no responsibility for any errors contained herein.