Binance Struggles to Re-enter UK Crypto Market Amid Regulatory Pushback
Binance, the world’s largest cryptocurrency exchange, is facing significant obstacles in its efforts to re-establish operations in the UK market. The struggles are primarily due to continued regulatory reluctance to engage with the platform.
Key points:
- Binance is seeking UK partners for communications under new crypto rules; at least 3 have declined.
- Rejections come after UK regulator FCA privately discouraged prospects from working with Binance.
- Follows years of FCA warnings over Binance’s compliance standards and opaque structure.
- Part of the broader Binance attempt under the new CEO to rebuild trust.
According to Bloomberg, Binance has pitched multiple UK firms for these mandated communications partnerships in recent months.
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However, the news agency reports that at least three prospects have rebuffed Binance’s inquiries following discreet discouragement from the UK Financial Conduct Authority (FCA).
UK’s FCA expressed opposition to the relationship with Binance
Sources said the FCA privately expressed opposition to authorized UK companies considering a relationship with the exchange. This behind-the-scenes deterrence showcases Binance’s struggles in rehabilitating its image despite a leadership shakeup.
In November 2023, founder Changpeng “CZ” Zhao resigned his CEO role as part of a record $4.3 billion sanctions settlement between Binance and US criminal and regulatory agencies.
Richard Teng, a former Singapore regulator, took over for Zhao as the exchange vowed to address persistent compliance issues.
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However, the FCA remains skeptical of Binance’s opaque structure and checkered history amidst its attempted UK return. The regulator previously banned the exchange from servicing locals in 2021, charging it wasn’t “capable” of effective oversight under the FCA’s remit.
While Binance contends it is continuing “productive conversations with potential approvers,” unease from UK regulators persists. Ongoing FCA reluctance and private warnings against collaborating with Binance underline the exchange’s ongoing reputational damage.
