Wednesday 25 August 2021 2:46 pm

FCA says it cannot supervise crypto exchange Binance effectively

UK Financial Conduct Authority (FCA) has admitted that it is “not capable” of effectively supervising Binance, the world’s largest crypto exchange by trade volume in a statement published today.

In a supervisory note the watchdog today reiterated its concerns over Binance’s products, which allow consumers to take supercharged bets, and added that the crypto exchange had given incomplete information, and even “direct refusals” to basic questions.

In the statement, the UK regulator wrote: “Based upon the Firm’s engagement to date, the FCA considers that the Firm [Binance] 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.”

In June, the FCA issued a warning that Binance was “not permitted to undertake any regulated activity in the UK” prompting major banks to stop UK customers from making payments to the site.