The Financial Conduct Authority of the United Kingdom has expressed concern about an agreement that would give Binance access to Paysafe, which is a local payment provider. According to the published reports, the regulator showed helplessness by saying that due to finite powers, it can’t object to the partnership between Binance and the payment network, which is based in London.
Binance was given an order to close its regulated activities by FCA in the country the previous year. The Financial Conduct Authority continuously expressed concern about the highly-risky investment products offered by the exchange. Consumers of high street banks aren’t allowed to send money to the exchange after a crackdown.
Deal with Paysafe will be helpful for cryptocurrency investors for sending fiat to Binance by Faster Payment Service; this network is faster and more reliable for payments among United Kingdom banks. The regulator seems unhappy about a favourable fiat-on-ramp for cryptocurrency exchanges in the United Kingdom.
A spokesman for the Financial Conduct Authority told that Our Binance related concerns remain. He added that they were notified about this business partnership. But on the other side, they have limited options to object to such arrangements.
Paysafe considered it a leading payment partner with complete regulatory compliance. A spokesman added that they take their regulatory responsibilities very seriously and adhere to the top industry standards. They are always completely transparent when dealing with regulators.
In December, Binance users of the United Kingdom have to provide personal information if they are interested in continuing trading derivatives. The exchange introduced Crackdown like KYC for EU users. They needed to provide a fleet of identification and other financial information to keep active their accounts. U.K.-based branch of Binance was called by the Financial Conduct Authority to get answers to the group-related questions in August 2021. According to the FCA, the branch failed to satisfy the authority with its answers.
The company said it had worked hard to keep working with regulators. A spokesman said that they have tried to work hard to develop a strong compliance program, including anti-money laundering practices and the equipment used by high-profile financial institutions. Binance is looking to draw regulatory attention beyond the pool.
According to the report of BeInCrypto, the Securities and Exchange Commission of the United States has started an investigation against two trading firms. These companies have a connection with Binance’s CEO, Changping Xiao. Binance, the globe’s biggest crypto exchange with $11.7B trading volume per day, will succeed in getting the regulators’ attention.
