Hideo Nakamura Binance, the world’s leading cryptocurrency exchange, has requested and received approval from Britain’s financial regulator to cancel its regulatory permissions in the United Kingdom. This decision comes as Binance aims to concentrate its operations on fewer European markets due to increased scrutiny from regulators and in anticipation of Europe’s upcoming cryptocurrency regulations.
The cancellation request for regulatory authorization was filed by Binance’s subsidiary in Britain, Binance Markets Limited (BML). On May 30, 2023, the Financial Conduct Authority (FCA) of the UK confirmed the completion of this request. As a result, according to the FCA’s Financial Services Register, Binance Markets Limited “can no longer provide regulated activities and products.” The FCA also stated that Binance is no longer authorized by them.
It is important to note that apart from Binance Markets Limited, no other entity within the Binance Group possesses any form of authorization or registration to conduct regulated business in the United Kingdom, as indicated on the FCA website.
Prior to the cancellation, Binance Markets Limited was not operating in the UK since the FCA imposed certain requirements on June 25, 2021, which prohibited the company from engaging in any regulated activities without prior written consent.
In the past, the FCA had warned against trading on Binance, noting that the Binance Group appeared to be offering products and services to UK customers through the website Binance.com.
This recent development of Binance canceling its UK regulatory authorization aligns with its decision to exit other European jurisdictions. Binance has faced increasing regulatory scrutiny in various countries, including the United States where its American subsidiary was sued by the Securities and Exchange Commission (SEC) for violating securities laws. Binance US managed to prevent asset freezing through an agreement with the SEC.
In Europe, Binance has been streamlining its operations and reducing its presence in terms of maintaining subsidiaries seeking regulated status across multiple jurisdictions. This is in anticipation of the implementation of the newly adopted Markets in Crypto Assets (MiCA) legislation by the European Union. Binance has expressed its intention to focus on regulated units in EU countries like France, Italy, and Spain.
Recently, Binance announced its withdrawal from the Dutch market due to its inability to register as a crypto service provider. It had also been fined by the central bank of the Netherlands for operating without proper registration. Additionally, Binance’s entity in Cyprus has applied to be removed from the country’s register of digital asset service providers.
Considering these developments, it remains to be seen whether Binance will exit other European jurisdictions. Feel free to share your thoughts on this matter in the comments section below.
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Frequently Asked Questions (FAQs) about regulatory authorization
What is the reason behind Binance canceling its UK regulatory authorization?
Binance has decided to cancel its UK regulatory authorization due to increased scrutiny from regulators and its strategic decision to focus on fewer European markets. This move allows them to align their operations with upcoming crypto regulations in Europe.
How does the cancellation of regulatory authorization affect Binance’s operations in the UK?
With the cancellation of regulatory authorization, Binance’s subsidiary, Binance Markets Limited (BML), can no longer provide regulated activities and products in the UK. No other entity within the Binance Group is authorized or registered to conduct regulated business in the United Kingdom.
Why did Binance decide to exit the Dutch market and apply for removal from the Cyprus register?
Binance is exiting the Dutch market because it was unable to register as a crypto service provider and faced fines from the central bank of the Netherlands for operating without proper registration. Similarly, Binance’s entity in Cyprus applied for removal from the country’s register of digital asset service providers.
What other regulatory challenges has Binance faced?
Binance has faced regulatory challenges in the United States, where its American subsidiary was sued by the Securities and Exchange Commission (SEC) for violating securities laws. However, Binance US managed to prevent the freezing of its assets through an agreement with the SEC.
Which European markets will Binance focus on?
Binance intends to concentrate on regulated units in European Union countries such as France, Italy, and Spain. By reducing its footprint in terms of subsidiaries seeking regulated status in multiple jurisdictions, Binance aims to streamline its operations and comply with the European Union’s newly adopted Markets in Crypto Assets (MiCA) legislation.
