The world’s largest foreign exchange bureau is in grave danger by Investing.com

Invest. com – The world’s largest cryptocurrency exchange in terms of daily trading volumes appears to face real risk after further escalation by one of the world’s leading financial regulators.

A few hours ago, the UK’s Financial Conduct Authority (FCA) said it was “unable” to properly oversee Binance amid the “significant risks” posed by crypto-exchange products, which allow consumers to take ultra-high bets.

Binance is one of the largest exchanges in the world, facilitating hundreds of billions of dollars in transactions every month.

But the Financial Conduct Authority said the UK branch of Binance “failed to respond” to some of its basic requests, making it impossible to oversee the sprawling group, which has no fixed headquarters and provides services. in the whole world.

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The start of the crisis

The Financial Conduct Authority censored Binance two months ago, saying the company was not authorized to offer traditional financial services or offer a crypto exchange in the UK.

Regulators in other major financial centers have also expressed concerns about Binance, but the company has continued to offer cryptocurrency trading to consumers around the world.

escalation

The UK regulator said a few hours ago that Binance’s “complex and high-risk financial products” pose “significant risk to consumers.” He added that a London-based subsidiary of Binance, which is registered with the watchdog as an investment firm, provided insufficient information on the products of the wider group on offer in the UK. .

In addition to other business details, she said, this meant that Cayman Islands-listed Binance “was unable to oversee effectively.

The Financial Conduct Authority (FCA) said it is disputing Binance’s responses to the questions it has raised this year. She added that Binance refused to provide even basic information, such as “the brand names and functions of all group entities around the world.

The Financial Conduct Authority (FCA) has asked the company to remove all types of financial advertising and promotions.

Binance Response

Binance said it has continued to “engage with the FCA to resolve any outstanding issues that may exist,” and added that it has complied with a series of requirements set out by the FCA in June, including posting notices on its website.

The FCA has issued a series of warnings by regulators around the world against cryptocurrency trading. Changping Zhao, its chief executive, has pledged to strengthen compliance, as financial regulators question the stringency of its anti-money laundering and terrorist financing policies on its platform.

Binance was building a separate regulated exchange in the UK through an FCA-regulated unit called Binance Market Limited that would trade cryptocurrencies against the euro, according to two former employees.

Binance applied to become a UK registered crypto company, but withdrew that request in May. “The information provided to the FCA is correct and we continue to have good faith discussions with the UK regulator,” Binance said.

The Financial Times said the FCA considered the company’s responses to some of the questions amounting to a refusal to provide information, and that the company had not adequately responded to the FCA’s information requirements.

Binance said its UK operations are separate from other parts of the global group, but internal Binance documents seen by the Financial Times indicate that “Binance operates an FCA-regulated company” and states that “consumers will be subject to the regulatory guidelines of the FCA “.

Binance Coin is trading during these times with an increase of 1.6% to levels of $ 484, while its market value is $ 81 billion and is the fourth largest digital currency by market value.