The FCA Expresses Difficulties In The Attempt To Regulate Binance

2021-08-27 17:17:47

United Kingdom’s FCA( Financial Conduct Authority) confirms speculations that it has difficulties in regulating Binance. More specifically, the FCA openly confirms that they are ‘not capable’ to successfully manage the leading US crypto exchange. While the FCA expected a certain level of difficulties, they certainly did not expect a non-existent cooperation from Binance. Which consequently, is what FCA points as one of the major issues that they have with the crypto exchange.


As a result, the FCA conducted a supervisory note. That is in order to highlight several potential issues with Binance and their products. While Binance persists that they did everything that the regulator asked, the FCA says otherwise:

Based upon 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 which offers complex and high-risk financial products, which pose a significant risk to consumers.FCA Official Statement

The case against Binance started in June 2021. Specifically, when the FCA issued a ban for Binance for violating local crypto laws. However, Binance claims that the company in question, Binance Market, is not the operator that offers such services in the UK.

Yet, this doesn’t seem to satisfy the regulator. In a response to these allegations, Binance claims complying to all demands by the UK FCA:

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.Binance Official Spokeperson

Consequently, this situation draws attention because Binance is the biggest crypto exchange in the world per trading volume. And as such, it is truly baffling to hear that the FCA reports difficulties when regulating Binance. Whatever the case, we can only wait to see how this situation will unfold.

 

 

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