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HomeNewsSupervision warns consumers about crypto exchange | Markets | 08/30/2021

Supervision warns consumers about crypto exchange | Markets | 08/30/2021

The financial supervisory authorities have the crypto exchange Binance on the Kieker: The Bafin had already warned the German subsidiary Binance Deutschland GmbH in April. The reason: There is a “sufficiently well-founded suspicion” that the company is offering the new “share token” without “the required prospectuses” on the website. Now the British financial regulator FCA is delivering the next warning. The supervisory authority is of the opinion that the company structure around Binance cannot be properly monitored, reports the “Frankfurter Allgemeine Zeitung” (FAZ).

Binance poses a significant risk for consumers. Another cause for concern for the FCA: The authority had made two inquiries to the crypto exchange, relating to the business model and the digital version of shares. The FCA interpreted the replies from Binance as a refusal to provide information. The company itself, however, emphasizes that it would cooperate with the authorities and want to develop a guideline to protect consumers.

reason to worry
The criticism of the crypto exchange is no coincidence. At the beginning of the week, an alleged former big data engineer on the platform claimed that Binance had an overview of the liquidity level and was influencing the price, “with the intention of making a profit from it,” reports the FAZ. In the past year, documents were also published in the USA, which show that Binance had created a complex corporate structure specifically to deceive the American regulatory authorities. (fp)

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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