Binance, one of the leading cryptocurrency exchanges, is facing further setbacks as it continues to withdraw from major markets due to regulatory challenges.
The latest development involves the company’s United Kingdom-based subsidiary, Binance Markets Limited (BML), which has officially canceled its registration with the Financial Conduct Authority (FCA).
Binance’s Non-Operational UK Entity
The cancellation request was made by Binance Markets Limited, and the FCA confirmed that the withdrawal of registration was completed on May 30, 2023.
As a result, none of the company entities now hold any operational approval in the UK, signaling an end to its ambitions in the country.
The troubles for the company in the UK began when the FCA flagged the local subsidiary in mid-2021, triggering similar warnings from regulators worldwide. The FCA initially imposed restrictions on Binance Markets Limited, preventing it from conducting regulated activities in the country.
According to Ilir Laro, Binance’s Sub-Regional Manager for Growth in the UK and Europe, the cancellation of BML’s registration will not have any operational impact since the subsidiary never conducted any business.
He clarified that BML had remained dormant since its acquisition by the Binance Group in 2020 and never engaged in regulated business in the UK.
Earlier, the company had expressed its intention to focus on the UK market following regulatory challenges in the United States. However, the exchange is now shifting its attention to comply with the newly amended Financial Promotions Order, which will become mandatory for operating in the UK starting October 8, 2023.
In addition to its troubles in the UK, the company is also facing legal action in the United States. The exchange is dealing with civil lawsuits filed by both SEC and CFTC.
Furthermore, the company is scaling back its operations in Europe. It has already deregistered its regulated subsidiary in Cyprus and is exiting the Netherlands after failing to obtain a VASP license from Dutch regulators. The regulated French subsidiary of Binance is also reportedly under investigation.
However, as Binance continues to face regulatory challenges and legal proceedings, the future of the exchange’s global operations remains uncertain. It remains to be seen how the company will navigate these obstacles and regain its footing in the cryptocurrency market.