Due to the crackdown on crypto exchanges in the US, Binance is looking to expand its business to the UK and other regions.
After its lawsuit with the United States Securities and Exchange Commission (United States Securities and Exchange Commission (seconds), owned by Binance, a global leading digital asset service provider withdrawn Registration of Binance Markets Limited (BML) with the Financial Conduct Authority (FCA). Apparently, BML is the United Kingdom subsidiary of the global crypto exchange. With these latest developments, Binance and its affiliates do not have any operating license or approval in the UK.
BML submitted a cancellation request for FCA approval which was completed approximately three weeks ago. The FCA confirmed that “following the completion of the revocation of permissions, the firm is no longer authorized by the FCA. No other entities of Binance Group hold any form of UK authorization or registration to conduct regulated business in the UK.”
Noteworthy, BML was banned from any business transacting in the UK territory by the FCA in June 2021. The ban came with a number of instructions, including the removal of any promotional and financial advertisements related to cryptocurrencies.
Binance was also required to inform its customers on its website and its social media platforms that it has no affiliation with businesses in the UK. consequently, Barclays plc (LSE: BARC) announced plans block Use of Debit and Credit cards while making any type of payment to the renowned exchange.
Furthermore, the ban coincides with a number of crackdowns on Binance from Canada, Japan, and Thailand. British investment banking giant HSBC Holdings plc (Lawn: HSBA) also stopped Its UK customers should refrain from paying to Binance on the grounds that it is passionate about investor protection.
Cancellation of FCA registration: Binance UK was never in business
Now that it has withdrawn its registration with the UK regulator, Ilir Laro, Binance’s deputy regional manager of development in the UK and Europe, claimed that the cancellation had no operational impact on the company as they have never been in business. I was not
He further explained that since BML was acquired by Binance Group in 2020, it has remained inactive. According to Laro, there had been an earlier attempt to start a regulated business in the UK but it proved fruitless.
To put this into perspective, the manager emphasized:
“To clarify, BML has never conducted any type of regulated business in the UK. In keeping with the FCA’s firm guidance on revoking unused FCA permissions, BML is no longer authorized by the FCA.”
Push for alternative space by US crypto firms
Unfortunately, due to the crackdown on crypto exchanges in the US, Binance is looking at expanding its business to the UK and other regions.
seconds sued on Binance on Monday, June 5 for a range of charges including operating as unregistered companies, violating know-your-customer (KYC) regulations, misleading investors and misappropriating customer funds.
American cryptocurrency exchange Coinbase as well had to face Unregistered National Securities Exchange and enforcement action for operating as a broker, a move that has forced the firm to rethink other areas.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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