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The co-owner of Dimplex, a Binance UK subsidiary, has accused the biggest cryptocurrency exchange in the world of releasing a "grossly misleading" annual report in 2020. The directors of Dimplex claimed that financial statements for one of Binance's UK subsidiaries "do not appropriately disclose" the nature of the company's operations or its assets, obligations, "including potential tax liabilities," and revenue.
Binance UK Subsidiary
Dimplex claimed in filings this month it was established in 2019 as a component of a joint venture with Binance. It raises concerns about the part UK businesses played in Binance's international activities before receiving a warning from the UK financial watchdog, the Financial Conduct Authority (FCA). The FCA forbade the UK-based component of the Binance group, Binance Markets Ltd., from engaging in any regulated operations in the UK in June 2021. The government claimed that Binance had neglected to submit fundamental details concerning its operations, including "trading identities and functions for all group businesses globally." According to its annual reports, Binance Digital, a "payment processing facilitator," formed in the UK in November 2019, was "responsible for transactions" between cryptocurrencies and all national currencies other than the Turkish lira.
Binance Digital Financial Statements
Company directors Simon Dingle and Joshin Raghubar claim several errors in Binance Digital's 2020 financial statements in Dimplex's annual report for February 2021. According to Binance's statement, Binance Digital ended the year 2020 with around £100 million in "cash and bank balances", and the same amount was owed to "creditors." The directors of Dimplex stated that they thought the £100 million reflected balances kept "on behalf of Binance Digital consumers who had visited binance.com" and would be "liable to pay transaction fees." However, the financial accounts showed "zero turnover or fees" on client transactions recorded throughout the fiscal year.