Prominent cryptocurrency exchange, Binance was seen undergoing immense scrutiny from regulators across the globe. While the platform tried to comply with regulations put forward by financial watchdogs, one such regulator revealed that Binance was not capable of being properly supervised.
The last couple of months seemed to be quite tough for the crypto exchange as it came under the purview of an array of regulators. United Kingdom’s regulator Financial Conduct Authority [FCA] and Binance had a major fallout as the regulator urged the exchange to shut shop for operating without a license. As the exchange was trying to comply with these laws, the FCA released a supervisory notice.
The regulator, back in June suggested categorized the exchange as a “complex and high-risk financial product.” This would mean that Binance would be considered a threat to the investors. therefore, this made the platform “not capable of being effectively supervised.”
The exchange stated,
“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.”
Binance has reportedly complied with the FCA’s requirements
Addressing the same, a spokesperson of Binance suggested that the platform had fully complied with the requirements put forth by the FCA. The spokesperson stated,
“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.”
However, the FCA noted that the platform had overlooked two particular requests for information. This consisted of information about the wider global business model of the exchange as well as its stock tokens.
Consequently, the exchange noted in a recent document,
“The FCA considers that the firm’s responses to some questions amounted to a refusal to supply information.”