The war with regulatory authorities seems endless for Binance. Since last year, some of Binance’s initiatives in the crypto space have fallen into controversy or become a hot topic. Now, its subsidiary ‘Bifinity’, a fiat-to-crypto payment method has become a target for Financial Conduct Authority’s(FCA) rage after joining hands with Eqonex.
Bifinity locked a deal with Eqonex Limited and will advance a $36 million convertible loan to enhance synergies between two parties. With this agreement, Bifinity now acquires specific contractual rights over Eqonex.
Eqonex is the first Nasdaq listed crypto exchange, which offers trading services compliant with authority.
Just Recently, Binance has launched its first fiat-to-crypto service provider Bifinity that supports over 50 cryptocurrencies and major payment methods including Visa, Mastercard, and others.
FCA stated in the latest e-document that they have no power to assess this strategic partnership before settlement, but they have “concerns about Binance”.
FCA stated that Binance Markets Limited is not allowed to acquire any regulated activities without the consent of the authority. They added that FCA can “take steps to suspend or cancel the registration of a crypto asset business” if they do not find them compliant with Money laundering regulations.
The reason behind the authority’s scrutiny is the supervisory notice published in June 2021. The authority mentioned that Binance is not capable of “being effectively supervised”.
Eqonex is the parent company of Digivault Limited, which is the crypto-asset firm registered at the FCA under the Money Laundering Regulations (MLRs). That means Binance group individuals and entities might become beneficial owners of Digivault for the purposes of the MLRs.
Also, Bifinity will also hold rights to hire the Chief Executive Officer, Chief Financial Officer, Chief Legal Officer of EQONEX, and two seats on the board of directors.
The initial focus of this partnership will be to utilize Digivault as an FCA-regulated custodian, provide technical support to the Eqonex Exchange and expand Bitfinity’s reach across the globe. As well as, grow Eqonex’s digital asset investment solutions business.
Chi-Won Yoon, Chairman of EQONEX said today, “We are extremely pleased to team up with Bifinity in a partnership that is likely to be transformational for both companies and for the industry at large. Bifinity shares our strong belief in helping to bridge the world of traditional finance with cryptocurrencies, as well as our conviction to operate to the highest standards of investor protection, regulatory oversight, security and governance.”
“This transaction marks the next logical step in our company’s evolution, representing an important opportunity to grow our footprint and expand our regulated offerings for the benefit of our customers and shareholders.”
