According to the FCA memo containing the notice which was first reported by the Financial Times, the agency’s proposed restrictions on Binance and detailed some of the actions taken by the exchange in recent weeks. It mentioned Binance’s post informing users it is not allowed to offer services to U.K. clients.
“Based upon the Firm’s engagement to date, the FCA considers that the Firm is not capable of being effectively supervised. 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,” part of the notice reads in part.
The note indicated that the regulator had also requested information from the crypto exchange previously. However, the CZ-led exchange had provided insufficient information for them.
For many months now, Binance has faced regulatory scrutiny from regulators worldwide, such as the Cayman Islands, U.K., Canada, and Thailand, all undertaking investigations into the crypto exchange.
The exchange has said it is in talks with the FCA about its regulatory standing. According to Binance’s spokesperson, “as noted by the FCA, Binance Markets Limited has fully complied with all aspects of its requirements.” He added that “we continue to engage with the FCA to resolve any outstanding issues that may exist.”