In the latest developments surrounding Binance, the world’s largest cryptocurrency exchange, the company has officially canceled Registered in the United Kingdom. The UK’s Financial Conduct Authority (FCA) has approved Binance’s request to deregister Binance Markets Limited (BML) (BML) on May 30, 2023, effectively ending its mandate to provide regulated services in the country.
While the termination of Binance’s registration with the FCA may seem significant, it will not affect the exchange’s operations as BML has never conducted business or had users in the UK.
Elir Larue, Binance’s UK and Europe Sub-Regional Head of Growth, explained that BML has been dormant since its acquisition by Binance Group in 2020 and has not been involved in any regulated activities.
In March, Binance halted the process of allowing UK customers to withdraw or deposit funds in British pounds after terminating its operating agreements with local partner Paysafe. According to data from Sidewalkthe exchange previously held a dominant position in terms of trading volume of GBP-denominated cryptocurrencies until it lost its banking partner.
Laro stated, “BML was successfully acquired back in 2020 by Binance Group, with the aim of launching a regulated business in the UK. However, this attempt was not successful, and has since been dormant since its acquisition.”
Cryptocurrency exchange Binance faces regulatory hurdles
Binance’s decision to exit the UK comes amid a series of regulatory challenges facing the cryptocurrency exchange. Both the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have filed lawsuits against Binance, alleging various violations, including deceptive practices and manipulative trading.
The company’s move to withdraw from the Netherlands was prompted by its failure to meet registration requirements, while in Cyprus, Binance is preparing to implement the Markets in Crypto Assets (MiCA) framework.
BNB price struggles as exchange battles regulatory headwinds | Source: BNBUSD on TradingView.com
With the upcoming implementation of MiCA in 2024, Binance aims to focus on obtaining permits to operate in key European Union (EU) countries. Binance’s director of sub-regional development for the UK and Europe, Elir Larue, said that the exchange still maintains regulatory agencies in Poland, Sweden, France, Italy and Spain.
Laro emphasized, “Since MiCA, the European Code on the Regulation of Cryptocurrencies, will come into force in 2024, the company will focus on obtaining permits to operate in EU countries.”
Binance’s exit from multiple markets and ongoing regulatory challenges highlight the intense scrutiny the cryptocurrency exchange is facing. However, Binance’s Director of Strategy, Patrick Hellman, expressed the company’s commitment to regulation in the UK despite the difficulties it is facing in the US.
Hillman stated, “We are committed to working constructively with UK regulators to develop and encourage responsible crypto adoption and innovation.”
As Binance navigates through these challenges, it remains to be seen how the exchange will adapt to regulatory frameworks and maintain its position as a major player in the digital currency industry.
Featured image from Reuters, chart from TradingView.com