LONDON (Reuters) – Britain’s financial watchdog said on Monday it lacked the power to assess the “fitness and propriety” of the new beneficial owners of custodian Digivault, after an arm of crypto exchange Binance issued a $36 million loan to Digivault’s parent.
Crypto assets firm Eqonex, which owns Digivault, earlier announced a tie-up with Bitfinity, a new payments arm of Binance, adding that the partnership would focus on “leveraging” Digivault, a custodian regulated by Britain’s Financial Conduct Authority.
Under the terms of the deal, Bitfinity will have the power to appoint Eqonex’s chief executive officer, chief financial officer and chief legal officer, as well as two directors, Eqonex said in a statement.
(Reporting by Tom Wilson; Editing by Tommy Wilkes)
