UK financial regulator says it is 'unfit' to oversee Binance

The Financial Conduct Authority (FCA) has acknowledged that due to a lack of communication from Binance, proper oversight is not currently possible.

Sponsored The Financial Conduct Authority

(FCA), has issued a supervisory notice

stating numerous concerns regarding Binance’s management and products. The notice gets very blunt, and in it conveys that

Based on the firm’s involvement to date, the FCA believes that the firm is unable to be effectively supervised.

Sponsored Sponsored The FCA

adds that this is a serious problem given that the exchange is a global exchange that offers high-risk products, and they pose a significant risk to consumers

.

This follows claims by

the FCA that Binance refused to answer what the FCA describes as “simple questions”. The notice specifies that the FCA sent a pair of information requirements to the exchange in 2021. Although Binance responded, the FCA claims that the responses “constituted a refusal to provide information.”

Included was a refusal to answer questions about the broader global business model. A refusal to provide information about the broader products offered and a failure to answer questions about tokenized shares. The failure to provide adequate information left Binance “unable to be effectively supervised.”

The FCA added that the exchange also failed to provide basic information related to the trade names and functions of all group entities around the world. Additionally, the notice said that the UK arm of Binance did not even have an approved senior manager.

In response, Binance continues to say that it operates separately from other parts of the global group and employs a team of people with strong compliance experience.

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Global regulators take aim at Binance

Binance continues to have issues with regulators around the world and its pursuit of compliance. Recently, both Hong Kong and Lituania have issued warning statements against the exchange and its unlicensed investment services. Lituania orders Binance to make sure it does not provide misleading public information. The FCA has also raised the issue of the exchange’s token

offering in Hong Kong.

The Securities and Futures Commission (SFC) in Hong Kong said the stock to ken offering was worrying if it can be accessed by its investors. The SFC added to the warning

a that no entity in the Binance group was licensed to conduct regulated business in Hong Kong. Binance has also received warnings from regulators in the United States, Germany, France and Australia.

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