AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Binance is under the scanner for its partnership with crypto firm Eqonex, which would see Binance get some control of Eqonex through a convertible loan worth US$36 million
- The FCA felt that even though they can’t stop the changes when it comes to Eqonex, it definitely has the power to either suspend or cancel the registration of a crypto asset business
- Previously, Binance was on the FCA’s radar for its Paysafe deal
It seems that the world’s biggest cryptocurrency exchange, Binance, is in a constant battle with the UK’s Financial Conduct Authority (FCA). Binance was barred by the FCA last year and told to stop operations.
This time, Binance is under the scanner for its partnership with crypto firm Eqonex. The deal is expected to give Binance control of Eqonex through a convertible loan worth US$36 million.
Binance will be offering the loan with its newly launched payments technology company Bifinity. Bifinity is an on- and off-ramp solutions provider which allows enterprises to not only adopt cryptos but also convert fiat-to-crypto transactions.
Also read: 5 popular and frequently used Layer 1 cryptos
The Nasdaq-listed Eqonex offers crypto trading, asset management services to clients. Last month only, Binance was on the FCA’s radar for its Paysafe deal. The FCA had concerns with the Paysafe deal and had identified Binance as having “significant risk” to consumers.
Why is the FCA concerned with Eqonex?
Eqonex's Digivault is an FCA registered unit which is aimed at ensuring no money laundering activities take place. However, with Binance now becoming the beneficiaries of Digivault, it is raising the eyebrows of the FCA, considering they did not want them to operate in the country.
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The FCA felt that even though they can’t stop the changes when it comes to Eqonex, it definitely has the power to either suspend or cancel the registration of a crypto asset business. The FCA further added it can cancel the registration on the grounds of Money Laundering Regulations.
Conclusion
For now, only Binance Markets Limited has the green signal from the FCA to operate a limited set of activities. Other arms of Binance don’t have any form of UK authorization or registration to conduct regulated operations in the UK.
The world’s largest crypto exchange though is said to have constant interactions with the regulators, but it looks like it will have to wait before it can be in the good books of the regulators.
