UK regulator may cancel Eqonex’s registration over Binance, Bifinity ties

The U.K. financial regulator has warned that it can suspend or cancel a firm’s crypto asset registration after noticing Binance’s new payment venture Bifinity’s partnership with Eqonex.

Fast facts

• The Financial Conduct Authority (FCA) said on Monday that individuals or entities from Binance may have become beneficial owners of Digivault, Eqonex’s FCA-registered crypto asset business.
• Under the partnership, Bifinity has the right to appoint top executives of Eqonex from within Bifinity.
• The FCA pointed out that it did not have the powers to assess the fitness and propriety of the new beneficial owners, and that it continues to hold concerns about Binance, most of whose businesses in the U.K. are restricted by the FCA.
• In December, Binance founder and CEO Changpeng Zhao said the exchange was rebuilding its operations in the U.K. after its local subsidiary was discontinued due to an FCA notice.
• Binance on Monday announced the establishment of Bifinity, its own fiat-to-crypto service provider to improve on-ramps.