Binance faces regulatory hurdles: UK registration revoked, Netherlands, Cyprus out

In the latest development surrounding Binance, the world’s largest cryptocurrency exchange, the company has officially Cancelled Its registration in the United Kingdom. The UK Financial Conduct Authority (FCA) approved Binance’s request to deregister Binance Markets Limited (BML) on May 30, 2023, effectively ending its authorization to provide regulated services in the country Done.

While the termination of Binance’s registration with the FCA may seem significant, it will not affect the operations of the exchange as BML has never conducted any business or had users in the UK.

Ilir Laro, Binance’s deputy regional manager for UK and Europe development, clarified that BML had been inactive since its acquisition by Binance Group in 2020 and was not 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 agreement with local partner Paysafe. according to data from CacoThe exchange previously held a dominant position in terms of cryptocurrency trading volume denominated in sterling until it lost its banking partner.

“BML was successfully acquired by Binance Group in 2020 with the aim of launching a regulated business in the UK,” Laro said. However, this effort did not materialize, and has remained inactive since its acquisition.

Crypto exchange Binance faces regulatory hurdles

Binance’s decision to exit the UK comes amid a series of regulatory challenges faced by 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 a failure to meet registration requirements, while in Cyprus, Binance is preparing the implementation of the Markets in Crypto-Assets (MiCA) framework.

BNB price struggles as exchange battles regulatory headwinds | Source: BNBUSD on TradingView.com

With the upcoming enforcement of the MiCA in 2024, Binance aims to focus on obtaining permits to operate in major European Union (EU) countries. Ilir Laro, Deputy Regional Development Manager for UK and Europe at Binance, noted that the exchange still maintains regulated organizations in Poland, Sweden, France, Italy, and Spain.

“As the European law on the regulation of cryptocurrencies, MiCA, comes into force in 2024, the company will focus on obtaining permits to operate in EU countries,” Laro emphasized.

Binance’s exit from multiple markets and ongoing regulatory challenges highlight the intense scrutiny the cryptocurrency exchange faces. However, Patrick Hillman, Binance’s director of strategy, expressed the company’s commitment to regulation in the UK despite the difficulties it faces in the United States.

“We remain committed to working constructively with regulators in the UK to develop and promote responsible crypto adoption and innovation,” Hillman said.

As Binance navigates through these challenges, it remains to be seen how the exchange will adapt to the regulatory framework and maintain its position as a leading player in the cryptocurrency industry.

Featured image from Reuters, Chart from TradingView.com