Binance can’t be supervised properly, says UK financial watchdog

The world’s biggest crypto exchange Binance is not capable of being supervised properly and poses a significant risk to consumers, Britain’s Financial Conduct Authority (FCA) said in a document published on Wednesday. The exchange has come under pressure from regulators across the world in past weeks due to concerns over the use of crypto in money laundering and risks to consumers.

The FCA banned Binance in June from conducting any regulated activity and imposed several requirements on the platform. Its document published on Wednesday expands on its reasons for placing the requirements on Binance’s UK-based Binance Markets Limited arm.

A Binance spokesperson said that as noted by the FCA, Binance Markets Limited has fully complied with all the watchdog’s requirements and it continues to engage with the FCA to resolve any outstanding issues that may exist. “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.

The exchange, whose holding company is registered in the Cayman Islands, has scaled back its product offerings and said it wants to improve relations with regulators. The FCA said volumes at Binance in June were estimated to be between $11 billion and $38 billion. Binance’s UK arm was not currently carrying out regulated activities and that it had not done so for more than 12 months, the FCA said in its document.

Binance can’t be supervised properly, says UK financial watchdog, Bloomberg, Aug 26