- Binance has scaled back its European presence in the past week.
- In the latest instance, it has been revealed that it has canceled its registration in the U.K.
- The move raised questions about the firm’s goal to be regulated in the country.
Binance, the world’s largest crypto exchange, is never far from controversy, particularly regarding regulatory compliance.
Recently, the crypto exchange’s actions in Europe have raised eyebrows. In the past week alone, the firm decided to pull out of Cyprus and the Netherlands. In the latest instance, it has been revealed that the firm has canceled its registration with the United Kingdom’s Financial Conduct Authority raising questions about its goal to be regulated in the country.
The End of Binance’s U.K. Plans?
Binance Markets Limited, the firm’s U.K. subsidiary, moved to cancel its registration with the FCA on May 30, according to the regulator’s website.
“This firm can no longer provide regulated activities and products,” the FCA wrote.
In response to a request for comment from DailyCoin, a Binance spokesperson asserted that the entity had not been operational in the U.K. and chose to cancel its permissions rather than update them as recommended by the FCA.
"Binance Markets Limited held various FCA permissions for activities that it never carried out or offered in the UK. As these permissions were unlikely to be required in the future, Binance Markets Limited decided that it would be prudent to cancel them in line with the FCA’s recommendations to keep these updated. This decision has no impact on Binance.com, which does not own or operate any crypto services in the UK and is only available to UK consumers on a reverse solicitation basis," the statement read.
When pressed about how this affects Binance’s plans to be regulated in the U.K., the spokesperson asserted that the firm’s plans remained intact.
"Binance Markets Limited's administrative process has no impact on Binance's future plans in the UK, we still have every intention of registering with the FCA to ensure regulatory adherence," the spokesperson claimed.
In May, Binance Chief Strategy Officer Patrick Hillman asserted that the crypto exchange would do anything possible to be regulated in the U.K.
In now-deleted tweets, Binance Sub Regional Manager, Growth – Europe & U.K. Ilir Laro suggested that the exit from Cyprus and the Netherlands was to focus efforts on obtaining the European Union-wide Markets in Crypto-Assets (MiCA) approval. Laro did not immediately return a request for comment.
Binance’s recent perceived exodus from Europe follows mounting regulatory troubles in the United States, where it faces lawsuits from the Commodity Futures Trading Commission and the Securities and Exchange Commission.
On the Flipside
- A Binance executive recently asserted that the crypto exchange is at least 90% ready for a MiCA license.
- Binance’s U.S. arm has been forced to switch to a crypto-only model after the SEC lawsuit.
Why This Matters
Binance’s decision to rescind its registration with the FCA comes at a time when the U.K. appears to be opening up to crypto.
Read this to learn more about Binance’s U.K. bet:
Why Binance Is Betting on UK Base as U.S. Drives Crypto Away
Binance recently reached an agreement with the SEC to secure customer deposits. Find out what experts are saying about the deal:
SEC-Binance.US Consent Order Agreement: Experts Disagree on Implications
