Binance Eyes UK Registration Amid Regulatory Troubles
Binance Wants to Extend to U.K
CZ stated that this could happen despite the regulatory challenges that the crypto exchange faces in the U.K. In June, Binance license to operate in the country was revoked by the U.K.’s Financial Conduct Authority (FCA) as part of its wide regulatory crackdown on crypto exchanges.
For Binance to operate in the U.K., the company must meet the money laundering and terrorism financing standards, something it has failed to achieve as its headquarters remain unknown. But Zhao stated that the company might consider setting up a specific subsidiary for its U.K. operations similar to what it did with Binance.US.
The CEO mentioned that Binance had hired some ex-regulatory staff in the U.K. who are familiar with the terrain and will help in its bid to get an FCA license. It has also hired several compliance people as it seeks to meet regulatory standards in various countries.
Binance Battles With Regulators
Binance, which is one of the largest crypto exchanges globally, has faced a plethora of challenges from regulators over the past few months. This is a result of concerted efforts of regulators to ensure that crypto companies abide by all compliance standards.
Without a doubt, Binance needs to improve its relationship with regulators amidst the global concerns about its service. There have been several allegations of market manipulation, which the company has vigorously denied. But multiple jurisdictions such as Germany, South Korea, and Malaysia continue to pressure it.
Binance announced in September that its Australian users have to close their positions for leverage tokens, options, and futures within 90 days amidst the increased regulatory concerns. It also previously stopped derivatives trading for users in Germany, Netherlands, and Italy as part of its efforts to suspend these products in Europe.
In October, Binance employed the former head of international relations for Dubai Financial Services Authority (DFSA) to serve as its chief regulatory officer. This was intended to enable better relations between the exchange and international regulators.