Binance And Coinbase Making All the Wrong Headlines

Binance have been accused of a grossly inaccurate” annual report by a co-owner of its U.K. subsidiary. This again puts the largest crypto exchange in the spotlight after previous concerns have been raised by the UK Financial Conduct Authority. In other unrelated news, Coinbase is also under investigation.

Binance Accused of “grossly inaccurate” annual report

Binance, the worlds largest cryptocurrency exchange by cryptocurrency trading volume has received significant criticism from a co-owner of its U.K. subsidiary. Dimplx is a UK company which was formed as a joint venture with Binance, and Dimplx directors have accused Binance of filing a “grossly inaccurate” annual report for one of Binance’s UK companies. The directors of Dimplx have accused Binance of misrepresenting the shareholder’s ownership stake in official company filings. The Financial Times goes on to report that the financial statements for 2020 for one of Binance’s UK companies “do not accurately report” the nature of its business, its turnover, assets and liabilities, “including potential tax liabilities”, according to the Dimplx annual report from 28th September

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The UK Financial Conduct Authority Have Concerns About Binance

The Financial Conduct Authority (FCA) is the U.K.’s primarily financial regulator and has had its run ins with Binance in the past. Going back to February of this year, the FCA raised concerns regarding a deal between Binance and payment group Paysafe, in order to access the U.K. Faster Payments Service. AT that time, the FCA highlighted its “concerns about Binance remain,” though it has “limited powers to object to arrangements of this kind,” adding “Paysafe is aware of our concerns and is subject to close ongoing supervision consistent with our approach for firms of its size.”

Prior to that in 2021, the FCA had warned that Binance shouldn’t be operating in the U.K. The FCA has stated that no entity in the Binance Group “holds any form of U.K. authorization, registration or license to conduct regulated activity in the U.K.”

Coinbase Under Investigation

In unconnected news, Coinbase, the largest cryptocurrency exchange in the United States by trading volume is said to under investigation. Directors and Officers of Coinbase are allegedly being investigated for possible false statements and illegal conduct, by Schubert Jonckheer & Kolbe LLP on behalf of shareholders of Coinbase Global, Inc

In a news release from Schubert Jonckheer & Kolbe LLP, they state that this relates to “possible false and misleading statements to investors and other alleged misconduct concerning the company’s growth strategy, listing practices, potential bankruptcy exposure of customer assets, and an alleged proprietary trading scheme.”