According to a recent supervisory notice, the UK’s financial conduct authority believes that cryptocurrency exchange Binance is “not capable” of being successfully monitored by the agency.
The Financial Conduct Authority (FCA) document was first reported by the Financial Times. The supervisory notice, issued June 25th, outlines the limits that the FCA intends to impose on Binance.
The notification outlines several of Binance’s recent activities, including issuing a notice for users stating that it is not permitted to serve clients from the United Kingdom.
However, Binance would be forced to suspend all operations in the jurisdiction, owing to the FCA’s inability to maintain the requisite level of oversight.
“The FCA believes that the Firm is not capable of being adequately overseen based on its involvement to date. This is especially concerning given the Firm’s affiliation with a multinational group that sells sophisticated and high-risk financial products that put consumers in danger” the warning stated.
They are unable to restrict the website in the United Kingdom, making it difficult to effectively limit Binance’s activity in the country, even if a ban is in place.
The FCA also requested information from the exchange in the supervisory notice. According to the Financial Times, the regulator deemed the firm’s previous information to be insufficient, in certain circumstances amounting to a “refusal to disclose information.”
This summer, regulators in the Cayman Islands, the United Kingdom, Canada, and Thailand all took action against Binance or launched investigations into the crypto exchange.
