By Hannah Perez
The exchange complied with the requirements requested by the UK watchdog in June; however, Binance is still not authorized to operate in the UK.
Two months after the UK’s Financial Conduct Authority (FCA) issued an order to Binance
asking it to halt its operations in that country, the largest cryptocurrency exchange appears to have resolved the issues with the UK regulator; although the agency still doesn’t seem too convinced.
The UK’s top financial regulator updated a notice issued to Binance
in June. At that time, the FCA had determined that the exchange was prohibited from conducting regulated activities in that jurisdiction. Among the warnings, the government agency had also required the company to meet a number of requirements and submit a compliance report by July 2.
This Wednesday, the FCA stated in an update that Binance “complied with all aspects of the requirements” that were imposed two months earlier. However, regulators added that the company “remains unable to conduct regulated business in the UK
Binance complies, but the FCA doesn’t seem convinced
As we reported earlier, in a June 25 notice, the regulator told Binance’ s UK division not to conduct any regulated business and that the www.binance.com
website should state in a prominent place that it is not authorized to offer trades to local customers. It also demanded an end to advertising and financial promotions.
In the supervisory notice, the FCA added that it considered the firm’s responses to the questions to be incomplete and that it had refused to provide the necessary information relating to the formal requirements under the Money Laundering and Terrorist Financing Regulations.
In addition, the regulators emphasized their belief that the exchange “is not capable” of being effectively supervised by the agency. The supervisory notice dated June 25
, which was published today on the FCA’s official website, reads:
Based on the firm’s engagement to date, the FCA considers that the firm is not capable of being effectively supervised. This is of particular concern in the context of the firm’s membership of a global group offering complex and high-risk financial products, which pose a significant risk to the firm’s business.The company has yet to obtain prior written consent from the FCA, according to the statement.
However, despite having followed the regulator’s rules to the letter, the digital asset manager is still not authorised to offer operations in the UK. exchange digital asset manager is not yet authorised to offer operations in the UK. According to the statement, the company still has to wait for prior written consent from the FCA.
Working with regulators
The reason for the FCA’s refusal may be, as some news outlets have pointed out citing the above statement, that regulators seem to be unable to maintain the necessary oversight of Binance.
Although some industry experts speculate that the move would not adversely affect the company’s operations in that region. In this regard, an anonymous source had commented to The Block that the ban was an indicator of how little control the FCA has over the activities of offshore entities.
As such, the agency cannot block the website in the UK, meaning that effectively curbing Binance’ s activity in the jurisdiction, even with a ban, is a challenge for the regulator. The exchange also confirmed at the time that nothing had changed for users and that the watchdog’s notice did not affect services.
The FCA’s move in June came just as Binance began receiving a series of warnings from regulators around the world. As a result, the company has been facing increased scrutiny and has been forced to take compliance measures to satisfy local authorities.
For the time being, Binance says it will continue to work with the UK regulator to resolve its situation in that jurisdiction. A spokesperson for the platform commented to The Block:
‘As noted by the FCA, Binance Markets Limited has fully complied with all aspects of its requirements. We continue to engage with the FCA to resolve any outstanding issues that may exist.
Version by Hannah Estefania Perez / DiarioBitcoin
Image from Unsplash