Home » Crypto Licenses » Binance is entering the United Kingdom despite regulatory obstacles

Binance is entering the United Kingdom despite regulatory obstacles

The CEO of Binance, Changpeng Zhao, announced their aim of extension to the United Kingdom in the next year and a half. Binance is currently the largest cryptocurrency exchange in the world, earlier this year the Financial Conduct Authority (FCA) decided to remove its trading authorization as part of a comprehensive regulatory suppression on virtual currency exchanges.

In order to become a verified crypto assets operator in the U.K, the platform must maintain excellent money laundering and terrorist financing rules. The renowned CEO stated that the company is planning on establishing a separate organisation in the United Kingdom, which will be similar to its US subsidiary e.g., BinanceUS.

Saturday, December 4th, the chief executive informed the Telegraph about Binance’s intensions to seek for an FCA license, Changpend Zhao mentioned that a group of former regulatory staff members from the U.K in addition to couple of hundreds compliance officers were being hired since the setback in June this year.

We have seen the former head of international relations at the Dubai Financial Services Authority (DFSA) being hired by the organisation in October as its top regulatory liaison officer to improve and lead the company’s interactions with foreign regulatory agencies. Further, Zhao stated that they have completely re-engaged with authorities and are in the midst of implementing significant improvements throughout their product offerings, internal processes as well the way they operate with regulatory bodies.

The license from FCA will allow Binance to implement products like futures and derivatives in the United Kingdom. In the month of September, the platform users in Australia were informed that there is a 90 day window to close their positions for futures, options and leveraged tokens as regulators were increasing their inspections. Similar bans were observed throughout Europe for users in the Netherlands, Germany and Italy as part of a larger strategy to discontinue supplying these products for Europeans. After releasing a warning in August, FCA declared that they were not able to effectively supervise Binance since there was no responce to the inquiries concerning its headquarters.

Although the exchange has disputed all claims of market exploitation, it continues to encounter opposition from a number of authorities including the ones in Malaysia, South Korea and Germany.

Photo by Jonathan Kemper

About the author, Deyvid Stoyanov

Deyvid developed his passion for technology, innovation, blockchain and decentralization throughout his bachelor and masters degree studies in Bulgaria and Italy. With several years of experience in the private sector, he is currently part of the FinTech Legal Center Tallinn-based team and remains immersed in the transformation of the financial and banking sector, the adoption of blockchain and cryptographic technologies as well as their interrelationship with state supervisory authorities and the European regulatory structure.

Leave a Reply

Your email address will not be published.

About Estonian Crypto Licenses

Estonian Crypto Licenses is a trading name of TechIuris OÜ, a company based in Tallinn, Estonia and specialised in legal and compliance solutions for European FinTech companies. We are a fully licensed company, and EVEA and e-Residency marketplace members. Here on our blog, we share the latest news on topics such as NFTs, cryptocurrencies, blockchain and much more.

Have a question or need any of our services?

Related posts