Binance has been considering expanding its business to the UK and other regions due to the crackdown on crypto exchanges in the US.
Following its lawsuit with the United States Securities and Exchange Commission (SEC), the global leading digital asset service provider Binance has withdrawn its registration of Binance Markets Limited (BML) with the Financial Conduct Authority (FCA). Markedly, BML is the United Kingdom subsidiary of the global crypto exchange. With these latest developments, Binance and its associates hold no operational license or approval in the UK.
BML submitted a cancellation request for the FCA approval which was completed almost three weeks ago. The FCA confirmed that “Following the completion of the cancellation of permissions, the firm is no longer authorized by the FCA. No other entity in the Binance Group holds any form of UK authorization or registration to conduct regulated business in the UK.”
Noteworthy, BML was banned by FCA in June 2021 from transacting any business in the UK region. The ban came with several instructions including removing any promotions and financial adverts related to cryptocurrencies.
Binance was also required to reveal to its clients on its website and its social media platform that it had no ties with businesses in the UK. Consequently, Barclays PLC (LSE: BARC) announced plans to block the use of debit and credit cards when making any form of payment to the renowned exchange.
Also, the ban coincided with numerous crackdowns on Binance from Canada, Japan and Thailand. British investment banking giant HSBC Holdings plc (LON: HSBA) also stopped its UK clients from making payments to Binance on the premise that it is passionate about investor protection.
FCA Registration Cancelation: Binance UK Was Never in Business
Now that it has withdrawn its registration with the UK regulator, Binance’s Sub-Regional Manager for Growth in the UK and Europe, Ilir Laro, claimed that the cancelation did not have any operational impact on the company as they were never in business.
He explained further that since BML was acquired in 2020 by Binance Group, it has remained dormant. According to Laro, there was an attempt made earlier to launch a regulated business in the UK but this proved abortive.
To put it in perspective, the manager emphasized:
“To clarify, BML has never conducted any type of regulated business in the UK. In keeping with the FCA’s firm’s guidance on canceling unused FCA permissions, BML is now no longer authorized by the FCA.”
Push for Alternative Location by US Crypto Firms
Unfortunately, Binance has been considering expanding its business to the UK and other regions due to the crackdown on crypto exchanges in the US.
The SEC sued Binance on Monday, 5th June for several charges including operating unregistered companies, flouting Know-Your-Customers (KYC) rules, misleading investors and mishandling customers’ funds.
American cryptocurrency exchange Coinbase also faced enforcement action for operating as an unregistered national securities exchange and broker, a move that has forced the firm to be reconsidering other regions.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.