The exchange met the requirements requested by the UK watchdog in June; however, Binance is not yet authorized to operate in that country.
Two months after the UK Financial Conduct Authority (FCA) issued an order to Binance requesting to stop its operations in that country, the largest cryptocurrency exchange seems to have solved the problems with the English regulator; although the agency still does not seem very convinced.
The UK’s main 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 comply with a number of requirements and submit a compliance report by July 2.
This Wednesday, the FCA stated in an update that Binance “met all aspects of the requirements“ that were imposed two months ago. However, regulators added that the company “still unable to conduct regulated business in the UK“.
Binance complies, but the FCA doesn’t seem convinced
As we previously reported, in a June 25 notice, the regulator told the division of Binance in the United Kingdom that it did not carry out any regulated activity and that the website www.binance.com it had to indicate in a prominent place that it is not authorized to offer operations to local clients. He also demanded an end to advertising and financial promotions.
In the supervisory notice, the FCA added that it considered the company’s responses to the questions to be incomplete and that it had refused to provide the necessary information related to the formal requirements under the money laundering and terrorist financing regulations.
Regulators also highlighted their belief that the exchange “not capable”To be effectively supervised by the agency. The supervision notice dated June 25, which was posted today on the FCA’s official website, reads:
Based on the company’s commitment to date, the FCA considers that the company is unable to be effectively supervised. This is especially concerning in the context of the company’s membership of a global group that offers complex and high-risk financial products, which pose significant risk to consumers.
However, despite having followed the regulator’s regulations to the letter, the main exchange of digital assets not yet authorized to offer UK operations. According to the statement, the company has yet to wait for the FCA’s prior written consent.
Working with regulators
The reason for the FCA’s refusal may be due, as noted by some news outlets citing the previous statement, that regulators appear to be unable to maintain the necessary vigilance to Binance.
Although some industry experts speculate that the measure would not negatively 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, which means that they effectively curb the activity of Binance in jurisdiction, even with a ban, it 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 measure in June came just as Binance began to receive 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 moment, Binance ensures that it will continue to work with the UK regulatory body 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.
Sources: FCA, FCA, The Block, CoinDesk, archive
Hannah Estefanía Pérez’s version / DailyBitcoin
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