The regulator released an update to clear the name of the exchange, but the company must still wait for prior written consent. Although the update by the FCA was good news, Binance still does not have any specific date on which to resume its operations.
The Financial Conduct Authority (FCA) recently authorized the Binance cryptocurrency exchange to operate in the UK. In June, the regulator warned consumers that Binance could not conduct any regulated activity in the European country.
At that time, Binance did not provide enough information to the FCA about its business operations, its corporate structure, and how retail consumers used their products. Likewise, the FCA also instructed the firm to remove all financial advertising and promotions.
However, the exchange for Bitcoin (BTC) and other cryptocurrencies told the financial regulator it would collaborate to comply with the legislation of the UK.
Binance told its customers the FCA’s warning did not have a direct impact on its online services. It added that its relationship with its users has not changed.
In recent months, the exchange has come under scrutiny by officials from several countries. These include the United States, the United Kingdom, Thailand, Malaysia, and Japan.
The pressure on Binance has led them to look for a person with more experience in regulatory matters to be their CEO. That may have happened due to the obstacles that different public agencies have put in their way.
FCA Says that It is Not Capable of Supervising Binance
Binance can continue to work in the UK after the Financial Conduct Authority solved all its problems. The regulator released an update to clear the name of Binance two months after restricting some of its operations.
The FCA admitted that it could not adequately supervise the Binance exchange. However, the regulator added that the firm was still unable to conduct regulated business in the UK. In other words, the company must wait for the prior written consent of the FCA.
The supervision notice, published on the official FCA website, reads that it is impossible to supervise Binance effectively due to its commitment. That is particularly of concern since the firm belongs to a global group offering complex and high-risk financial products. That poses a significant risk to consumers.
The Opinion of Binance about the Procedures by the FCA
Changpeng Zhao, CEO of Binance, described what has happened in the UK as positive progress, slow but sure.
The FCA noted that Binance has fully met all aspects of its requirements. In addition, they said that they are still collaborating with the FCA to solve any pending issues that may exist.
Zhao added that they are committed to working with the regulators and legislators as the cryptocurrency ecosystem grows and evolves. The objective is to develop policies that protect consumers, encourage innovation, and advance our industry.
While that update by the FCA was good news to Binance, things are still unclear to users. The UK regulator did not specify which products Binance users could use in the country. It also did not mention any specific date from which users could resume using the exchange.
By Alexander Salazar
