British lawmakers are seeking to determine the role of leading crypto-currency exchange Binance in the recent FTX collapse. While the exchange has sent answers to some of the questions it has been asked, it appears that lawmakers are still not satisfied.
UK crypto-currency regulation could take a new form
A recent Bloomberg article suggests that the answers sent by Binance did not do justice to the questions posed by the parliamentary committee. According to Alison Thewliss, a member of the Treasury Committee, “it doesn’t really give us the real details of the context.“
Thewliss also says that more questions will still be asked of Binance to get a full picture of what happened with FTX. His reason is that the fate of the crypto industry could depend on the thoroughness of the ongoing investigation. It is also important to note that FTX was a major competitor of Binance before its bankruptcy. Therefore, the committee will focus on reviewing Binance’s internal records. It will also determine what prompted the exchange to dump its holdings of FTT (FTX’s native token).
But for what it’s worth, the outcome of the investigation is expected to have an impact on the type of crypto-currency regulation the committee will ultimately recommend for the UK. This means that the national regulator, the Financial Conduct Authority (FCA), could now exercise broader control over crypto-currencies.
Recall that currently, the FCA only issues regulatory approval to crypto companies that have properly complied with its anti-money laundering laws.
Binance faces scrutiny in the UK and US
Meanwhile, Binance isn’t exactly new to being scrutinized by authorities. The giant exchange has had several run-ins with global regulators in the past, including the U.K. FCA.
This time, however, the U.K. isn’t the only nation investigating Binance, particularly in relation to the FTX collapse. The United States is also investigating the exchange, with a hearing scheduled for December by the House Financial Services Committee.