The Financial Conduct Authority (FCA) of the United Kingdom has announced that Binance’s local unit is no longer permitted to offer regulated services within the country. According to an update on the FCA’s website, the top financial regulator canceled several permissions previously granted to Binance’s UK unit, based on the company’s own request.
Binance Markets Limited, the UK entity, held various permissions from the FCA for activities that were never conducted or offered in the UK, as confirmed by a spokesperson for Binance in a statement to CoinDesk. The firm voluntarily sought to withdraw these permissions, considering that they were unlikely to be necessary in the future.
U.K. regulator @TheFCA has cancelled certain permissions it gave crypto exchange @binance's local unit upon the company's request. By @iamsandali and @JamieCrawleyCD.https://t.co/2duYKfy0dO
— CoinDesk (@CoinDesk) June 19, 2023
The spokesperson further clarified that this decision would not affect Binance.com, which does not own or operate any cryptocurrency services in the UK. The platform is only accessible to UK consumers on a reverse solicitation basis, ensuring compliance with the FCA’s recommendations.
Binance Withdraws Registration in Cyprus, Shifts Focus on Fewer European Jurisdictions
In response to the implementation of the EU’s new Markets in Crypto Assets (MiCA) regulation, Binance has recently taken steps to withdraw its registration with a regulatory body in Cyprus. The company has expressed its intention to concentrate on fewer European jurisdictions moving forward. Additionally, Binance announced its decision to exit the Netherlands after being unable to secure regulatory approval in the country.
Binance deregisters in UK amid regulatory woes https://t.co/xqyqr6NMlk
— The Block (@TheBlock__) June 19, 2023
The regulatory challenges for Binance extend beyond Europe. Its U.S. unit and founder, Changpeng “CZ” Zhao, are currently facing a lawsuit filed by the Securities and Exchange Commission (SEC). The lawsuit alleges the sale of securities and operation of an unregistered trading platform. Furthermore, French authorities have confirmed an ongoing investigation into Binance for “aggravated money laundering” since at least 2022.
Regarding its operations in the United Kingdom, the Financial Conduct Authority (FCA) has confirmed that Binance is no longer authorized, following the cancellation of permissions. The FCA’s June 7 update stated that no other entity within the Binance Group possesses any form of UK authorization or registration to engage in regulated business in the country. The FCA previously stated that Binance was “not capable of being effectively supervised” in 2021, thereby prohibiting its UK arm from conducting any regulated activities in the country.
The regulator also highlighted that the Binance Group appears to be providing a range of products and services to UK customers through the website Binance.com.
