UK regulators stated they cannot supervise the Binance crypto exchange properly and said that the exchange poses a significant risk to traders as we are reading more in our latest Binance news.
In reference to the biggest crypto exchange, Binance as the UK financial regulator stated that based upon teh company’s engagement to date, the FCA considers that the company is not capable of being effectively supervised. Reuters reported that the regulator is very worried about Binance’s global reach and range of products which is considered as a major risk:
“This is of particular concern in the context of the firm’s membership of a global group which offers complex and high-risk financial products, which pose a significant risk to consumers.”
The FCA prohibited Binance from conducting more activity in the UK and imposed a few requirements on the platform. The same month, Binance stated that nothing really changed because Binance Markets Limited is not offering crypto derivatives in the UK and the FCA rules do not apply to the full spectrum of the Binance Group companies that are global and beyond the reach of the FCA. One Binance spokesperson said that Binance Markets Limited fully complied with the regulator’s requirements and it still continues to engage with the FCA in order to resolve any other issues that could 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 regulator wanted more as it sent two requests for information about the Binance wider global business model and the synthetic stock tokens as it stated that the FCA considers the company’s responses to some questions amount to a refusal to provide information. Binance is already complying with the regulators within the jurisdictions of the UK but all eyes are now set on the Cayman Islands registered company. It remains to be seen whether the regulators in other countries have authority over companies that are based in other countries. The UK regulators stated they cannot supervise the exchange properly as its native token BNB made 2.8% in the past day to trade at $493 at the time of writing. It performed well during the market rally as it gained 23% over the past week and 62% over the past month.
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