Binance cancels UK registration due to regulatory scrutiny.
The troubled cryptocurrency exchange Binance is continuing to pull out of major markets due to pushback from regulators around the world.
Binance’s subsidiary in the United Kingdom, Binance Markets Limited (BML), has officially cancelled its registration with the Financial Conduct Authority (FCA).
After deregistration, no Binance entity is authorised by the FCA to provide any services in the United Kingdom, the regulator stated on its website.
The FCA completed Binance’s cancellation request of BML’s permissions with the authority on May 30, 2023.
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“Following the completion of the cancellation of permissions the firm is no longer authorised by the FCA,” the regulator noted in an update on June 7.
Cancelling BML’s registration did not have an operational impact on Binance, as it had never been operational in the country, a regional manager at Binance reportedly said.
Binance’s sub-regional manager for growth in the U.K. and Europe, Ilir Laro, argued that BML has never conducted any type of regulated business in the United Kingdom. He added:
“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 also pointed out that Binance still holds five regulated entities in Europe, including France, Italy, Spain, Poland and Sweden. He noted that they are moving focus to getting ready for MiCA, which means some consolidating in order to passport throughout Europe.
Binance previously had some regulatory issues in the United Kingdom. In 2021, the FCA ordered Binance to stop all regulatory activities in the country.
The news comes shortly after Binance’s chief strategy officer expressed the company’s commitment to be regulated in the U.K. amid Binance’s issues in the United States. Binance is facing two civil lawsuits from U.S. regulators, including the Securities and Exchange Commission and the Commodity Futures Trading Commission.
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The exec also mentioned the reasoning behind Binance’s regulatory retreats in countries like Cyprus, the Netherlands and Nigeria.
Some more FUD. Let’s address it: Cyprus – we have withdrawn our VASP registration as we prepare for MiCA Holland – we have stopped offering services due to not obtaining a local license Nigeria – the complaint is against “Binance Nigeria Limited” which is not owned by Binance
— Ilir Binance (@ilir_laro) June 18, 2023
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