The UK’s Financial Conduct Authority (FCA) levelled a censure at cryptocurrency firm Binance saying it is “not capable” of supervision.
The FCA claims Binance failed to provide it with enough information regarding its business operations, corporate structure, or the ways retail customers consume its products.
According to a note dated 25 June, but released last week, Binance refused to answer questions about its global business model, offer details on its specific products, or provide information on its Binance Stock Tokens.
In the note, the FCA says Binance’s role as a “global group” means this lack of information poses “significant risk to consumers”.
It adds: “The FCA has concluded, in light of the matters set out above, that the Firm has failed to carry on a regulated activity for a period of over 12 months, and further that it is failing or likely to fail to satisfy the effective supervision threshold.”
As a result, the FCA asked Binance to remove all advertising and financial promotions and place a prominent notice on its website that it was unregulated.
Following its issuance of the supervisory notice, the regulator says Binance went on to comply with its measures and mollify its concerns.
“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.”