The Financial Conduct Authority of the United Kingdom has expressed concerns about Bifinity and EQONEX’s recent strategic partnership. If it believes a crypto asset firm to be a risk, the watchdog has the authority to cancel or suspend its registration.
According to the FCA, there are concerns about the conduct of regulated operations in the region.
On March 7, the two companies announced their partnership, indicating that it would result in Bifinity issuing a £27.5 million convertible loan to EQONEX. The cooperation aims to benefit from leveraging EQONEX’s custody solution Digivault.
“As an FCA regulated custodian, strengthening the technology supporting the EQONEX Exchange, and expanding Bifinity’s geographical footprint through EQONEX’s licensing framework.”
The top financial regulator feels that the loan gives Bifinty special contractual powers over EQONEX. Despite the fact that Digivault is registered with the FCA under its Money Laundering Regulations, the authority claims,
“Individuals and entities that are part of the Binance Group may have become beneficial owners of Digivault for the purposes of the MLRs.”
The FCA, on the other hand, is adamant that Binance should not engage in operations without written approval. It believes that Binance’s riskier products could have a severe impact on consumers.
In light of this the FCA has stated that if it finds a crypto asset business to be a danger, it can suspend or terminate its registration. This means that if the FCA views the issues as substantial, the EQONEX-Bifinity cooperation may end up moot.
Binance’s operation and services in the region have been scrutinised by the FCA. It warned consumers that Binance was unregulated and halted its operations in the United Kingdom. Crypto advertisements, according to the authority’s boss, require greater regulation.
Binance has faced probes by governments all around the world. It comes under the lens when it comes to rules because it is one of the world’s most popular exchanges. It recently ceased operations in Israel after a licensing request from the Capital Market, Insurance and Savings Authority (CMISA).