Regarding the world’s largest cryptocurrency exchange, UK financial regulator Binance stated that due to the company’s past involvement, the FCA believes that the company cannot be effectively supervised.
On August 25, Reuters reported that regulators had raised concerns about Binance’s global influence and range of products, viewing it 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 banned Binance from all regulated activities in the UK and placed a number of requirements on the platform.
Later that month, Binance replied that there was no change as Binance Markets Limited is not a company offering crypto derivatives in the UK. The FCA rules do not apply to all Binance Group companies worldwide and beyond.
According to Reuters, a spokesperson has stated that Binance Markets Limited has fully met all regulatory requirements and will continue to work with the FCA to resolve any outstanding issues.
“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, however, and has sent two requests for information about Binance’s broader global business model and its synthetic stock tokens. It stated that the FCA considers that the firm’s responses to some questions amounted to a refusal to supply information.
Binance already complies with the requirements of the UK jurisdiction but is now focused on this global company registered in the Cayman Islands. It remains to be seen whether the regulators of individual countries have power over companies in other countries.