It has been revealed that the UK Financial Conduct Authority (FCA) has expressed concerns about significant risks, such as money laundering, after it judged that it could not properly monitor Binance Markets Limited, a crypto-asset exchange subject to regulation.
The FCA is an organization that regulates and supervises futures trading and settlement of payments trading. Direct trading of crypto assets is not regulated in the UK, but if you want to expand trading services such as crypto asset derivatives, you must act in accordance with the requirements set by the FCA and the prudential oversight body PRA. Binance UK had applied to the FCA to start a business, but on June 26, 2021, the FCA banned them from doing business in the UK because they were unable to conduct a regulated business.
On August 25, the FCA reported that data dated June 25 was released, revealing that the FCA was unable to effectively supervise Binance UK as an operator that offered complex financial products that pose serious risks to consumers. lost. It was also found that the FCA imposed requirements on Binance UK offices, such as clarifying organizational structures or specifying how consumers purchase products.
Binance also claimed that under FCA regulations, Binance UK is an independent entity headquartered in the UK and is not affiliated with Binance.com, where the same crypto assets can be traded. Mentioning that users in the UK will still be able to conduct transactions through Binance.com. It also said it would improve its relationship with regulators by demonstrating actions for verification, including announcing that it would conduct more stringent background checks on its customers to bolster its money laundering efforts.
The FCA states that Binance UK must comply with all imposed requirements before it can conduct business. Binance continues to work with the FCA to address any outstanding issues that may exist, and is committed to working with regulators and policy makers to develop policies that protect consumers and advance the industry. Related information can be found here.