Aug 26, 2021 14:15:00

It has been revealed that regulators have determined that the virtual currency exchange Binance cannot be properly monitored.

The UK's

Financial Conduct Authority (FCA) has determined that Binance Markets Limited, the UK branch of Binance, a virtual currency exchange that was subject to regulation, is ``unable to be properly monitored'' and that it has committed serious crimes such as money laundering. It has become clear that they have expressed concerns about the risks.

First Supervisory Notice 2021: Binance Markets Limited
(PDF file) https://www.fca.org.uk/publication/supervisory-notices/first-supervisory-notice-binance-markets-limited.pdf

Binance Markets Limited
https://register.fca.org.uk/s/firm?id=001b000000nojfNAAQ

Binance can't be supervised properly, says UK financial watchdog | Reuters
https://www.reuters.com/technology/binance-cant-be-supervised-properly-says-uk-financial-watchdog-2021-08-25/

UK's FCA Authorizes Binance Markets Limited (BLM) to Operate in the Country
https://bitcoinexchangeguide.com/uks-fca-authorizes-binance-markets-limited-blm-to-operate-in-the-country/

The FCA is an organization that regulates and supervises futures trading and cash settlement trading. Direct trading of virtual currencies is not regulated in the UK, but in order to develop trading services such as virtual currency derivatives, it is necessary to operate in accordance with the requirements set by the FCA and the Prudential Regulation Authority (PRA) . Binance Markets Limited had applied to the FCA to start business, but on June 26, 2021, the FCA announced that it was prohibited from doing business in the country, stating that it was unable to operate a regulated business. I did.

Virtual currency exchange Binance will be banned from business by British financial authorities, Japan's Financial Services Agency also warns - GIGAZINE

Subsequently, on August 25, 2021, a document dated June 25 by the FCA was published, stating that the FCA recognized Binance Markets Limited as 'an operator that provides complex financial products that pose a significant risk to consumers.' It was revealed that the company was judged to be ``incapable of effective supervision.'' It was also revealed that the FCA had imposed requirements on Binance Markets Limited, such as disclosing its organizational structure and specifying how consumers can purchase products.

In addition, Binance is regulated by the FCA and claims that ``Binance Markets Limited is an independent corporation based in the United Kingdom and is unrelated to Binance.com, which also allows virtual currency trading.'' It said users in the UK can continue to trade on Binance.com. The company also announced that it would conduct stricter background checks on customers to strengthen its efforts against money laundering, indicating that it would take action toward approval, and that it wanted to improve its relationship with regulators. said.

The FCA states that ``Binance Markets Limited complies with all of the requirements imposed'' but continues to ``not be able to operate a regulated business.'' A Binance spokesperson said: 'We continue to work with the FCA to address any unresolved issues that may exist.' We are working on developing the.'