UK FCA says Binance complied with requirements but ‘not capable’ of being supervised
|- The UK FCA stated that Binance has complied with the requirements set out in June.
- The regulator said the cryptocurrency exchange failed to sufficiently respond to basic questions.
- The financial watchdog added that the digital asset firm is “not capable” of being supervised.
The United Kingdom’s Financial Conduct Authority (FCA) stated that the leading cryptocurrency exchange Binance was “not capable” of being appropriately supervised despite the substantial “risks” posed by the products of the platform. The regulator further added that the firm’s UK affiliate was unable to respond to basic queries.
Binance fails to respond to basic questions
The FCA banned Binance from undertaking any regulated activity in the country in late June. Following the warning from the regulator, several banks, including Santander, Barclays and Natwest, blocked payments to the crypto exchange.
Binance further suspended GBP withdrawals and EUR deposits through SEPA bank transfers. Other payment providers including Faster Payments and Clear Junction also halted services for the crypto platform.
The FCA announced that Binance has indeed complied with all aspects of the requirements it imposed in June following the warning.
The financial watchdog said in a statement that the FCA considers that Binance is “not capable of being effectively supervised.” The regulator is further concerned due to the platform’s ability to offer complex and high-risk financial products, which could “pose a significant risk to consumers.”
The FCA has requested information on the crypto exchange’s wider global business model as well as its stock token products. The regulator considers the responses from Binance as insufficient, which was interpreted as a “refusal to supply information.”
Binance said in response that it has already complied with all of the aspects required by the FCA. A spokesperson for the crypto exchange said the firm will continue to engage with the financial regulator to resolve any outstanding issues.
The financial watchdog previously warned consumers regarding the potential risks of investing in the new asset class. According to the regulator, trading cryptocurrencies could involve very high risks, and if consumers invest in digital asset products at all, they “should be prepared to lose all their money.”
Binance Coin price awaits 15% move
Binance Coin has printed an ascending parallel channel pattern on the 12-hour chart, consistently recording higher highs and higher lows. BNB sliced above the upper boundary of the technical pattern, suggesting a 15% target on the upside.
To effect the aim given by the governing chart pattern, Binance Coin price would need to ideally close above the topside trend line of the parallel channel at $497.84.
Should BNB be able to flip the 61.8% Fibonacci extension level at $507.58, this would incentivize the bulls to head toward the bullish target of a 15% rally at $603.16.
BNB/USDT 12-hour chart
However, one more obstacle remains at the 78.6% Fibonacci extension level at $588.14 before Binance Coin could tag the topside trend line of the upper parallel channel.
If selling pressure increases, Binance Coin may retest the upper trend line of the chart pattern at $497.84 as immediate support. Should BNB fail to hold above this level, the token may discover the next line of defense at the 50% Fibonacci extension level at $450.99.
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