According to the UK Financial Conduct Authority, Binance cannot be effectively monitored

• Binance, the world’s largest crypto exchange, is not capable of being adequately overseen and poses a substantial danger to consumers, according to a paper released by the UK’s Financial Conduct Authority (FCA) on Wednesday
• In a document dated June 25, the FCA stated, based on the business’s involvement to date, the FCA thinks that the firm is not capable of being properly overseen
• According to the FCA, it submitted two requests for information regarding Binance’s worldwide business strategy and stock tokens

Binance, the world’s largest crypto exchange, is not capable of being adequately overseen and poses a substantial danger to consumers, according to a paper released by the UK’s Financial Conduct Authority (FCA) on Wednesday. Regulators from around the world have been putting pressure on the exchange in recent weeks, citing worries about the use of cryptocurrency for money laundering and consumer dangers. In June, the FCA barred Binance from engaging in any regulated business and set a number of requirements. The grounds for imposing the limitations on Binance’s UK-based Binance Markets Limited business are detailed in a document released on Wednesday.

In a document dated June 25, the FCA stated, based on the business’s involvement to date, the FCA thinks that the firm is not capable of being properly overseen. This is of particular concern given the firm’s affiliation with a worldwide organization that provides sophisticated and high-risk financial products that carry substantial risk. Binance Markets Limited has completely complied with all of the watchdog’s criteria, according to a Binance spokesman, and it continues to work with the FCA to resolve any lingering problems. As the cryptocurrency ecosystem business grows and evolves, we are dedicated to engaging with regulators and politicians to establish regulations that protect consumers, support innovation, and drive our industry ahead, added the spokesman.

According to the FCA, it submitted two requests for information regarding Binance’s worldwide business strategy and stock tokens. The watchdog stated in the paper that the firm’s replies to several inquiries amounted to a refusal to disclose information. The exchange, whose holding company is based in the Cayman Islands, has reduced its product offers and stated that it wishes to strengthen its regulatory relations. According to the FCA, Binance’s volume in June was anticipated to be between $11 billion and $38 billion. The FCA stated in its paper that Binance’s UK branch was not now engaged in regulated operations and had not done so for more than a year.

Ritika Sharma

With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.