In reference to one of the world’s leading crypto exchanges, Binance, the UK’s financial regulator FCA has stated that “based upon the firm’s engagement to date, the FCA considers that the firm is not capable of being effectively supervised.” According to the Reuters report, FCA is concerned about Binance’s global reach and range of products which it considers as a “significant risk.” Binance has been facing increasing regulatory scrutiny recently.
Binance offerings pose a significant risk to consumers.
UK’s FCA said, “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.” Earlier this month, the FCA prohibited Binance from conducting any regulated activity in the UK 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 UK. However, the FCA rules do not apply to the full spectrum of Binance Group firms which are global and beyond its reach.
Binance continues its efforts to comply with regulators.
As reported by Reuters, a Binance spokesperson said that Binance Markets Limited has fully complied with all the FCA’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 spokesperson added. Crypto exchange had earlier hired a former IRS official to lead its global money-laundering efforts.