LONDON :The world’s biggest crypto exchange Binance is not capable of being supervised properly and poses a significant risk to consumers, Britain’s Financial Conduct Authority (FCA) said in a document published on Wednesday.
The FCA had said in June it had banned Binance from conducting any regulated activity and issued a warning to consumers about the platform.
Binance has come under pressure from regulators across the world in past weeks due to concerns over the use of crypto in money laundering and risks to consumers.
The FCA’s document published on Wednesday expands on its reasons for banning Binance’s UK-based Binance Markets Limited arm.
“Based upon the firm’s engagement to date, the FCA considers that the firm is not capable of being effectively supervised,” the watchdog said in the document dated June 25.
“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.”
The exchange, whose holding company is registered in the Cayman Islands, has scaled back its product offerings and said it wants to improve relations with regulators.
The FCA said volumes at Binance in June were estimated to be between US$11 billion and US$38 billion.
Binance’s UK arm was not currently carrying out regulated activities and that it had not done so for more than 12 months, the FCA said in its document.
(Reporting by Huw Jones; editing by David Evans and Emelia Sithole-Matarise)
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