Crypto exchange Binance is not capable of being properly supervised, according to a document published by the Financial Conduct Authority (FCA).
Binance has been under pressure from several financial watchdog agencies lately. They have expressed concerns that the world’s largest crypto exchange platform is putting its customers at risk regarding money laundering. Due to this issue, Binance got banned from operating in the UK by the FCA.
“On 25 June 2021, the FCA imposed requirements on Binance Markets Limited. The firm complied with all aspects of the requirements.”
A new paper was released on Wednesday by the British watchdog, dating June 25. It states that the exchange has complied with all the imposed requirements, but it is “not capable of being effectively supervised.” Binance has given incomplete responses and information, so the FCA had to stop its operations.
“Based upon the firm’s engagement to date, the FCA considers that the firm is not capable of being effectively supervised.”
Starting from June 30, the exchange platform was required to add a notice in a distinguishable place on its official webpage stating:
“BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE U.K. Due to the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA. (No other entity in the Binance Group holds any form of U.K. authorisation, registration or license to conduct regulated activity in the U.K.).”
Then in July, CONSOB made clear that Binance wasn’t authorized to operate within Italy. The Italian regulator also advised people to be cautious when it comes to digital assets’ transactions.
“Consob warns savers that the companies of the “Binance Group” are not authorized to provide investment services and activities in Italy, not even through the website www.binance.com whose sections called “derivatives” and “Stock Token”, relating to instruments related to crypto-assets, were previously also written in Italian.”