FCA Issues Warning Against the Strategic Partnership of EQONEX with Bifinity 

Key Takeaways: 

  • EQONEX becomes strategic partners with Bifinity. 
  • The FCA will be regulating all the activities of the Binance markets. 

On March 7, EQONEX Limited announced that it had joined hands with Bifinity UAB for a strategic alliance. The terms of this deal include that Bifinity, previously known as ‘Binance UAB,’ will propel a US$36 million convertible loan to EQNEX. 

The British Financial Regulator, FCA, had raised concerns regarding Binance. It has now been announced that FCA has gained powers to assess the fitness and legitimacy of the individuals and organisations who have gained the status of beneficial owners due to this transaction. 

Eqonex, the first digital asset firm with an exchange, is the parent company of Digivault Limited. Whereas, Bifinity is a payments technology company and a wing of the Binance group. The initial launch of Bifinity was supposed to happen in 2021 but eventually started its operations on March 7, 2022. 

The partnership between the firms to amplify business collaborations. It also wishes to grow its ventures by capitalising on specific opportunities where there will be a chance of collaboration. 

However, the  FCA has denied permission to Binance markets to take on any regulated activities without formal written consent from the financial regulator. As a result, the Binance Market is under the regulation of the FCA as it isn’t capable of operating independently yet. 

FCA is particularly concerned about the Binance Market’s participation in the global Binance group. The regulator depicts complicated and high-risk in terms of financial items and is afraid that the consumers are subject to critical gambles. Therefore, the FCA reserves the right to “suspend or cancel the registration of a crypto asset business if it is not satisfied the firm or its beneficial owner is fit and proper.”

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Shreya Bhattacharya

A journalist & writer exploring new topics every day!

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