The Financial Conduct Authority (FCA), the UK’s financial regulator, has said Binance poses a significant risk to consumers and cannot be effectively controlled by the watchdog.
In a supervisory notice dated June 25, the department disclosed the reasons behind its decision to ban the British division of the exchange from conducting regulated activities in the country.
The FCA has raised concerns about Binance’s global reach and product line.
The agency has noted they sent inquiries to the company twice, however, according to the FCA, the responses received from the exchange can be qualified as hiding information.
Binance declined to disclose its global business model, the legal entity behind the binance.com domain, clarify the regulatory status of tradable tokenized shares, and did not provide requested information on other products.