Binance’s Evidence of FTX Drop Is Inadmissible, UK Lawmakers Say

(Bloomberg) — Binance sent news articles to a UK Parliamentary committee investigating the collapse of FTX.com and its proposed sale of FTX’s native FTT token, a move some lawmakers called disappointing and unacceptable.

Read more from Bloomberg

When asked in an interview with Bloomberg Radio if she was happy with the submission, Alison Thewliss, a member of the Treasury Committee, said, “No.”

“It doesn’t really give us the real details of the background,” she said. “I’m sure the committee will be asking more questions to get details of what happened here, because there are broader implications for this collapse and the crypto sector as a whole.”

The committee expected to receive internal records this week about the possible market consequences of Binance announcing the divestment of FTT. Daniel Trinder, Binance’s vice president of government affairs in Europe, was seen listening as part of the group’s crypto-asset inquiry.

A document provided by Binance, published by the committee on Wednesday, provided a list of news articles showing the timeline of FTX’s collapse.

Thewliss said Binance’s lack of transparency would affect the committee’s inquiry and the recommendations it will make to the government on regulating the crypto industry.

Limited Powers

Although Treasury Committee members were “disappointed” and would like to have more internal discussions, Chair Harriett Baldwin said in an interview that “we don’t have much ability to push for more than we got” as an FTX activity. . which were mostly outside the UK.

Read more: How Binance, FTX Deal on the Crypto World and Where It Fell

“They may be hiding behind some commercial secrecy on that, but really, given the scale of things, that’s not really acceptable,” Thewliss said.

Binance was set to acquire troubled rival FTX.com earlier this month, but pulled out of the deal citing problems with FTX’s finances as well as possible regulatory investigations. His decision accelerated the flow of crypto, with Bitcoin falling to its lowest level in two years.

A spokesperson for Binance said it was unable to provide any FTX-related documents other than factual information, as the exchange is “cooperating and sharing information on a strictly confidential basis” with authorities investigating the fall of FTX in multiple jurisdictions.

Wider Concerns

Binance has been trying to present itself as a unifying force for the crypto industry since the FTX decline began, as an olive branch to the failed platform and a source of financial rescue for affected projects.

The UK’s Financial Conduct Authority is set to receive expanded powers to regulate the crypto industry in upcoming legislation, which will bring crypto-assets including stablecoins and their providers under existing payments regimes.

“The committee has a broader concern, as do others, about the regulation of cryptocurrencies, about the protection that consumers and businesses have in this country as well,” Thewliss said.

–Assisted by Aisha S Gani.

Read more from Bloomberg Businessweek

©2022 Bloomberg LP

Leave a Reply

Your email address will not be published. Required fields are marked *