(Bloomberg) —
Britain’s market regulator said it was “not capable” of supervising Binance Holdings Ltd.’s operations in the U.K., leading the authority to crack down on the cryptocurrency trading firm.
Binance failed to provide sufficient information to the Financial Conduct Authority about its business operations, corporate structure and ways that retail consumers used its products, according to a notice from the regulator dated June 25 and released on Wednesday.
“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 regulator said in the notice. The FCA also told the firm to remove all advertising and financial promotions.
Binance, which was founded in 2017 and expanded quickly in an environment with few regulations, has come under scrutiny in recent months from officials in countries ranging from the U.S. and U.K. to Thailand, Malaysia and Japan. On June 26, the FCA warned consumers that Binance Markets Ltd., an affiliate of Binance, was not permitted to undertake any regulated activity in the U.K.
“As noted by the FCA, BML has fully complied with all aspects of its requirements,” said Binance in a statement. “We continue to engage with the FCA to resolve any outstanding issues that may exist. As the cryptocurrency ecosystem industry continues to grow and evolve we are committed to working with regulators and policymakers to develop policies that protect consumers, encourage innovation, and move our industry forward.”
The Financial Times reported the notice earlier.
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