- The UK’s Financial Conduct Authority (FCA) says crypto exchange Binance is not capable of being supervised properly and presents a risk to consumers
- Binance has come under fire from regulators around the world, with concerns raised over the use of cryptocurrencies in money laundering
- In June, the FCA banned Binance from conducting any regulated activity and imposed a number of requirements on the platform
- The FCA is also seeking information regarding Binance’s broader global business model
Binance, the world’s largest cryptocurrency exchange, is not capable of being supervised properly and presents a significant risk to consumers, according to a document published on Wednesday by the UK’s Financial Conduct Authority.
The exchange has come under pressure from regulators around the world over the last few weeks, with concerns raised over the use of cryptocurrencies in money laundering and other scams.
In June, the FCA banned Binance from conducting any regulated activity and imposed a number of requirements on the platform. Wednesday’s document expands on the reasons for implementing those requirements, which relate specifically to Binance’s UK-based Binance Markets Limited business.
“Based upon the firm’s engagement to date, the FCA considers that the firm is not capable of being effectively supervised,” the document 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.”
A spokesperson for Binance said the company haD fully complied with all the necessary requirements and continued to engage 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 spokesperson said.
In addition to those requirements, the FCA has also sent two requests for information regarding Binance’s broader global businesss model and its stock tokens.
“The FCA considers that the firm’s responses to some questions amounted to a refusal to supply information,” the regulator said.