Original title: it is difficult to supervise the cryptocurrency exchange. FCA admits that it is impossible to supervise the currency security effectively.

After pioneering the global regulation of encrypted currency security, the UK Financial Conduct Authority (FCA) said it could not effectively regulate the UK subsidiary of Binance due to its limited capacity.

FCA acknowledged and noted on August 25th local time that this is of particular concern given that Qian'an is a global group member that provides complex and high-risk financial products that pose a significant risk to consumers.

"based on the scope of Qian an's business to date, we do not think the company can be effectively supervised."

As the world's largest cryptocurrency exchange, the 24-hour spot trading volume of Yuan'an is expected to be between $11 billion and $38 billion in June 2021, supporting 316 transactions of encrypted assets in 1138 pairs of transactions. The 24-hour derivative trading volume of Binance Futures is expected to be between US $43 billion and US $129 billion over the same period, with open interest rates in the range of US $5.3 billion to US $6.7 billion.

Yuan an UK, formerly known as EddieUK, is an authorized investment company on April 13, 2018. In May 2020, Yuan an Capital Management Co., Ltd. acquired EddieUK, which submitted a notice of change of its control to FCA on April 27, 2020, which was subsequently approved by FCA on May 29, 2020. As a result, EddieUK has become a part of Yuan an Group.

According to FCA, in June 2020, the company submitted an application to register its encrypted assets business under section 57 of the money laundering, terrorist financing and transfer of funds (payer Information) regulations 2017 (MLRs).

The company intends to become a UK-based exchange for encrypted assets under the name of currency Anglo-UK. It provides retail and commercial customers with the business of converting legal currency into encrypted assets, converting encrypted assets into legal currencies, and converting encrypted assets into other encrypted assets. FCA says:

"after discussions between FCA and the UK, the latter signed an undertaking that it would not provide any encrypted asset business unless it was registered or notified by FCA that it could take advantage of the transitional terms."

FCA issued two formal information requirements in 2021, including disclosure requirements based on MLRs.This means that existing companies operating encrypted assets in the UK (operating by January 10, 2020) need to comply and need to be registered by FCA. Companies with encrypted assets that are not registered with FCA before January 10, 2021 must stop trading.

In FCA's view, the UK reply was incomplete and declined to provide details about its business and how the group was organized, the legal entity behind its website, and how British consumers could buy products.FCA said:

In May 2021, the UK confirmed to the FCA that it had not been engaged in any business that needed to be regulated since the approval of the control change request, that is, since May 29th, 2020. The company also said it plans to provide regulated activities to customers once it has decided on its business plan and strategy. As of June 23, 2021, we have not received the company's final (or final draft) business plan and strategy, nor have we received any notification from the company. "

After not receiving a satisfactory reply, FCA said on June 26th local time that it would ban encrypted currency trading services in the UK.

"Yuan an does not have the authorization and permission to conduct encrypted assets business in the UK, and from June 30, it must publish a statement on its website that before obtaining written consent, we order it to stop any regulated financial activities in the UK, such as investment transactions."

The statement required by FCA to be published by Qian an is as follows:

"in the UK, Qian an the UK is not allowed to engage in any regulated activities. Due to the mandatory requirements of the FCA, the UK is not currently allowed to carry out any regulated activities without the prior written consent of the FCA. (no other entity of the Group holds any form of UK authorization, registration or license that allows it to carry out regulated activities in the UK). "

With regard to the latest allegations made on August 25, Yuan an said that he would continue to have sincere contacts and discussions with FCA to resolve any outstanding issues that may exist. The currency security side said:

Qian'an complied with a series of requirements put forward by FCA in June, including posting notices on its website. In addition, the information provided by Yuan an to FCA is also correct. "

Under the regulatory layers, the list of Yuan'an International Compliance team and Advisory Committee continues to grow and update. The number of people has increased by about 500 per cent since 2020. On August 18, local time, Qian'an appointed Greg Monahan, a criminal investigator of the United States Department of the Treasury, as the rapporteur on global encrypted money laundering, which will focus on expanding its international anti-money laundering and investigation program and strengthening its links with global regulatory and law enforcement agencies.