Bifinity, the new payment company launched by Binance on Monday (8), has already harassed UK regulators, particularly Nasdaq-listed cryptocurrency company Eqonex.
Will lend $ 36 million to Eqonex as a way to acquire some contract rights to Binance’s Bifinity.
The problem in the eyes of regulators of the Financial Conduct Authority (FCA) is that Eqonex is a company registered with the FCA under anti-fraud regulations, and companies in the Binance Group may benefit from Eqonex under the new agreement. Record.
“The FCA has not been authorized to assess the eligibility and entitlement of new beneficiary owners or change the regulation prior to the conclusion of the transaction. However, we have previously published information about our concerns about Binance. Note Of controllers.
It is worth noting that Binance Markets Limited, the only company in the Binance Group, is restricted to operations defined by the FCA. “No other company in the Binance Group has UK accreditation, registration or license to carry out regulated activities,” the statement said.
Due to the requirements imposed by the FCA, Binance Markets Limited, although currently registered, is not allowed to carry out any regulatory activities without the written permission of the regulators.
According to the FCA, this obligation was imposed because Binance could not effectively oversee it. “This is particularly behind the Binance Markets’ membership of the global Binance Group, which provides complex, high-risk financial products that pose significant risk to consumers,” regulators say.
If the cryptocurrency company or its beneficiary owner is not satisfied that the FCA may decide to suspend or deregister the cryptocurrency company, this applies to both Binance and Eqonex.
“Until the pending issues are resolved, the FCA’s concerns about Binance Markets Limited will remain, including those mentioned in the June 2021 oversight notice,” he concludes.
Binance vs UK
2021 was a difficult year for Binance’s UK operations. In June last year, FCA regulators said the cryptocurrency exchange was not allowed to “perform any regulated activity in the UK”.
Despite a ban by the FCA in January of that year, the margin and derivative trade provided by Binance to customers in the country remained a major problem.
The warning at the time forced Binance to stop advertising and collecting data on UK customers.
Under pressure from regulators, the exchange had several problems with UK banks and payment processors, which decided to stop offering their services to Binance, making it difficult for the site to make withdrawals and deposits in sterling and euros.
Henry Blackwell is a contributor at Mediarunsearch.co.uk, covering a wide range of topics including news, politics, business, technology, sport, entertainment, and lifestyle. He focuses on delivering clear, balanced reporting and useful information that helps readers stay informed about current events and emerging developments. His work highlights stories that matter to everyday audiences, with an emphasis on accuracy, relevance, and accessible journalism.