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Binance’s official fiat and digital currency payment provider, Bifinity, has entered into a strategic partnership with digital asset manager EQONEX. FCA warned about the possibility of canceling the registration of the latter.
Founded in 2020 in Singapore, EQONEX has been listed on the Nasdaq. The firm offers cryptocurrency trading, custody and asset management services. Its circuit includes the crypto-exchange of the same name and the FCA-registered custodian Digivault.
Partners will focus on leveraging Digivault, enhancing existing technology and expanding Bifinity’s geographic footprint through the EQONEX licensing system. The parties will also explore opportunities to expand the product line.
Bifinity will provide EQONEX with a $36 million convertible loan for 18 months. The company will have the right to appoint a CEO, CFO and chief legal officer, as well as nominate two seats on the board of directors.
The FCA warned that after the change of control “may suspend or cancel the registration of a business, if the firm and its beneficial owner do not comply with the requirements and regulations.”
“The FCA has the power to suspend or revoke a license for a number of reasons, including where the firm has failed to comply with money laundering regulations.”the notice says.
Earlier, European crypto broker Bitpanda received a similar warning after being taken over by FCA-registered custodian Trustology.
Recall that on March 7, Binance launched the payment company Bifinity. At the same time, the bitcoin exchange announced the conclusion of partnerships with Safepal, Zilliqa, EQONEX and Checkout.com platforms.
In December 2021, Binance CEO Changpeng Zhao Changpeng Zhao announced that Binance plans to get registered in the UK.
Last year, the FCA banned Binance from operating in the country. The company acknowledged that one of the reasons for regulatory problems was the decentralized model of its business, and decided to abandon it.
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