Binance cancels registration in the UK amid regulatory scrutiny

In a recent move, cryptocurrency exchange Binance has decided to cancel the registration of its inactive business operations in the United Kingdom. 

The decision comes as part of Binance’s efforts to streamline its operations and focus on active business activities. 

Binance Withdraws from UK Market as Regulatory Pressure Mounts

Binance is facing increasing challenges as it continues to undergo regulatory scrutiny. 

In the latest development, its subsidiary Binance Markets Limited (BML), decided to cancel its registration with the Financial Conduct Authority (FCA) in the United Kingdom. 

The cancellation comes as Binance withdraws from major markets and adjusts its operations to comply with regulatory requirements.  The company stated that it had held permissions from the FCA for activities that were not conducted or offered in the UK. 

These moves reflect the ongoing pushback world’s largest crypto exchange is experiencing from regulators globally. On its website, the regulator stated that following the deregistration, no Binance entity is permitted by the FCA to offer any services in the United Kingdom.

The Financial Conduct Authority (FCA) confirmed that it fulfilled Binance’s request to cancel the permissions of its subsidiary, Binance Markets Limited (BML), on May 30, 2023. This means that BML’s authorization to conduct certain activities regulated by the FCA has been officially revoked.

In an update on June 7, the regulator stated that as the cancellation of permissions was finalized, the firm is no longer authorized by the FCA.

Binance’s sub-regional manager for growth in the UK and Europe, Ilir Laro, highlighted on Twitter that Binance continues to operate with five regulated entities in Europe: France, Italy, Spain, Poland, and Sweden. 

He mentioned that they are preparing for the implementation of the Markets in Crypto Assets (MiCA) regulation in 2024/2025, which requires consolidating operations to facilitate passporting throughout Europe.

Ilir Laro also provided insights into the reasons behind world’s largest crypto exchange decision to withdraw from certain countries, including Cyprus, the Netherlands, and Nigeria.

But following Binance’s problems in the United States, the company’s chief strategy officer, Patrick Hillmann, announced that Binance is determined to comply with regulations in the United Kingdom (U.K.). 

Binance Exchnage Faces Ongoing Investigation in France Since February 2022: Report

Also, according to a recent report, world’s largest crypto exchange has been under investigation by the Judicial Investigation Service of France since the beginning of 2022.

The investigation likely pertains to regulatory compliance and potential violations of French laws and regulations related to cryptocurrency trading and financial services.

The investigation is reportedly based on allegations made by the Paris Prosecutor’s Office, which include “illegal provision of digital asset services (PSAN), aggravated money laundering through involvement in investment operations, concealment, and conversion, with perpetrators profiting from offenses.”