UK FCA Reacts to EQONEX Convertible Loan from Bifinity

The UK’s Financial Conduct Authority has issued a statement on Monday about Bifinity’s $36 million convertible loan advance to EQONEX. According to the watchdog, it has no power to “assess the fitness and propriety of the new beneficial owners or the change in control” before the transaction is completed.

Bifinity is the new legal name of an entity formerly named Binance UAB, part of Binance Group, which also owns Binance Markets Limited and is regulated by the FCA but just for a “limited set of activities,” the authority warned.

That said, there is no other entity in the Binance Group with a UK authorization, registration or license to conduct a regulated activity in the UK. The FCA currently prohibits Binance Markets Limited from engaging in regulated activities without the written consent of the FCA.

“This requirement was put in place because, in the FCA’s view, Binance Markets is not capable of being effectively supervised. This is particularly concerning in the context of Binance Markets’ membership of the global Binance group, which offers complex and high-risk financial products posing a significant risk to consumers,” the British watchdog commented in the statement.

As a parent company of Digivault Limited, an FCA-registered cryptoasset business, EQONEX Limited is listed under the Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term Regulations (MLRs).

June 2021 Supervisory Notice Concerns Remain in Place

Moreover, the FCA hinted at the possibility of taking steps to suspend or cancel the registration of a cryptoasset business “if it is not satisfied, the firm or its beneficial owner is fit and proper.”

The UK watchdog added: “The FCA also has powers to suspend or cancel a firm’s cryptoasset registration on a number of grounds, including where a firm has not complied with obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term under the Money Laundering Regulations. Until outstanding issues are addressed, the FCA’s concerns about Binance Markets Limited remain, including those highlighted in the supervisory notice of June 2021.”