British authorities have taken action against Finance, the world’s largest cryptocurrency exchange.
The Financial Regulatory Commission ruled that no “regulatory action” could be taken in the UK.
It also issued a warning to consumers about Finance.com, advising them to be wary of ads that offer higher returns on crypto investments.
The accounting site said the authority’s decision would not have a “direct impact” on the level of services it provides.
Finance does not exist in the UK, so it has practically no impact on UK residents using the site to buy and sell cryptocurrencies, despite a commission decision.
The Financial Regulatory Authority does not regulate cryptocurrencies, but must register trades on its site.
Accounting does not register its activities with the Financial Regulatory Authority, so cryptocurrencies are not allowed to trade in the UK.
The accounting site said its relationship with its users has not changed, saying, “By working with the relevant regulatory authorities we adopt a cooperative approach and take very seriously the obligations to comply with regulatory authorities’ orders. Changing policies, rules and regulations in this new space.”
The FRA’s move comes amid protests from regulators around the world over the operation of cryptocurrency sites.
It is noteworthy that the accounting platform specializes in exchanging digital currencies on the Internet, offering users a variety of financial products and services, including the purchase and trading of digital financial wallets, futures contracts in a wide range of digital currencies. , Bonds, Savings Accounts and Lending Activities
The finance group is currently headquartered in the Cayman Islands, while the group’s subsidiary, Finance Markets Limited, is headquartered in London.
The company has several divisions around the world, and the finance group was previously based in Malta.
The Financial Regulatory Commission in the UK has stated that “Finance Markets Limited”, which is owned by the Finance Group, does not currently have the authority to carry out any regulatory activities without the written approval of the Authority. The company has until Wednesday to comply with this decision.
The Comptroller confirmed that no unit of the Accounting Committee has any authorization, registration or license to carry out regulatory activities in the UK.
Controversy over the functions of accounting
This is not the first time that accounting regulators have come under scrutiny for its operations around the world.
Bloomberg Media Corporation, one of the units of the Accounting Group in the United States, is the subject of an investigation by the Financial Securities and Exchange Commission, particularly its officers dealing with money laundering and tax evasion offenses.
The U.S. Securities and Exchange Commission issued a similar warning in April to US consumers about the platform’s activities.
The Finance Committee announced on Saturday that it was withdrawing from Ontario, Canada, following allegations by the Ontario Securities Commission and other platforms that it had traded in digital currencies for failing to comply with laws in force in Ontario.
Japan’s financial services company has warned that for the second time in three years, it is operating in the country without permission.
Crypto investor and entrepreneur Nick Sabonaro explained to the BBC that when the crypto trading group claims that not all of its units are affiliated with it, it is a practical ploy to avoid problems with regulatory issues.
Finance announced over the weekend that it had decided to withdraw its operations from Ontario due to concerns raised by its regulator.
“I’m sure they’re trying to comply with the rules, but often with this business … there is hope that we will get enough financial income, and if we are fined, it’s very low compared to the profits we make,” Sabonaro said.
The real problem with cryptocurrency trading is that it is still centralized, with a central authority managing user funds almost like banks.
He said this was contrary to the original mission of crypto-related technologies and that all trades should be fully decentralized, allowing users to fully manage their cryptocurrency.
But he stressed that cryptocurrencies are not fraud. “We are now in the twelfth cycle of cryptocurrency adoption,” he said. “These things take time, the same things that were initially said about the Internet.”
He concluded by saying, “Governments … especially G7 governments need to have full transparency and complete confidence in giving us regulatory control over what we can and cannot do, and adapt digital currencies to what technology can do.”
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