Binance Deregisters in the UK, Expediting Its EU Exodus

Binance Deregisters in the UK, Expediting Its EU Exodus

The registration of Binance Markets Limited (BML), the UK subsidiary of the global crypto exchange, with the Financial Conduct Authority (FCA) has officially been withdrawn at the company’s request. Now, none of the Binance entities is holding any operational approval in the UK.

’No Impact on Future Plans in the UK’

„Binance Markets Limited has recently submitted a cancellation request of their FCA permissions which was completed on 30 May 2023,” an update from the FCA stated. „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.”

The UK regulator flagged the local subsidiary of Binance in mid-2021, which triggered an array of similar warnings by several other financial market watchdogs globally. The FCA initially imposed restrictions on Binance Markets Limited, prohibiting the firm from conducting any regulated activity in the country.

Commenting on the development, a Binance spokesperson told Finance Magnates that the cancelled permissions were for non-crypto related activities. The spokesperson added that the 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.”

„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 elaborated.

A Non-Operational Entity

Binance’s Sub-Regional Manager for Growth in the UK and Europe, Ilir Laro, further pointed out that the cancellation of Binance Markets Limited’s registration did not have an operational impact as it never conducted any business.

„BML was successfully acquired back in 2020 by Binance Group, intended to launch a regulated business in the UK. This attempt was not successful, however, and has since then remained dormant since its acquisition,” Laro noted.

„To clarify, BML has never conducted any type of regulated business in the UK. In keeping with the FCA’s firms guidance on canceling unused FCA permissions, BML is now no longer authorized by the FCA.”

Earlier, a Binance executive revealed the exchange’s plans to move towards the UK following the regulatory backlash in the US. The UK unit of the exchange is now focusing on the newly amended Financial Promotions Order, which is a mandatory rule to operate in the country. This comes into effect on October 8, 2023.

Meanwhile, Binance is facing two civil lawsuits in the US, one brought by the Securities and Exchange Commission (SEC) and the other by the Commodity Futures Trading Commission (CFTC).

Following Binance’s troubles with the two top US regulators, the exchange is also reducing its European presence. It has deregistered its regulated subsidiary in Cyprus and decided to exit the Netherlands as it failed to obtain a virtual asset service provider (VASP) license from the Dutch regulators. The regulated French subsidiary of Binance is also reportedly facing a probe.

This article was written by Arnab Shome at www.financemagnates.com.

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