According to the official website of the Financial Conduct Authority, the regulator is aware of the recent statement made by Eqonex Limited and Binance Group about a $36 million convertible loan provided by Bifinity.
As the authority reports, through the loan, Bifinity acquired contractual rights over Eqonex. At the same time, Bifinity is the new legal name for Binance UAB, which is directly a part of the Binance Group.
Arman ShirinyanThe deal allowed the Binance Group to potentially become beneficial owners of Digivault Limited, which is a subsidiary of Eqonex Limited. The company is a cryptoassets business registered by the FCA.
As the regulator reports, they had no authority over the new beneficial owners of the company before the transaction was completed. The entity regulated by the FCA is Binance Markets Limited, not Binance UAB. Other entities in the Binance Group are not regulated by the FCA and cannot conduct unregulated financial activities in the U.K.
Alex DovbnyaBecause of requirements forced by the regulator, Binance Markets Limited will not be able to conduct any regulated activities without the consent of the FCA. The main reason, according to the authority, is the inability to supervise the entity, which is concerning for the FCA since Binance Markets Limited is a member of Binance group that offers high-risk solutions for investors from the U.K.
The regulator is able to suspend or even completely cancel the registration of a crypto business in the country if it considers the owner or the firm itself unfit. The regulator has the power to cancel registrations based on the inability of the company to comply with money laundering regulations.
Godfrey Benjamin
Alex Dovbnya
Dan Burgin
Vladislav Sopov