Cryptocurrency exchange Binance is continuing to withdraw from major markets as it faces resistance from global regulators. The Financial Conduct Authority (FCA) has officially canceled the registration of Binance Markets Limited (BML), the company’s subsidiary based in the United Kingdom. The FCA announced on its website that no Binance entity is authorized to offer services in the UK following the deregistration.
On May 30, 2023, the FCA completed the cancellation request for BML’s permissions with the authority. This move signifies Binance’s ongoing retreat from major markets due to regulatory challenges. The cancellation of BML’s registration does not impact Binance’s operations since it had never conducted business in the UK.
Binance’s Regulatory Challenges and Commitment to Compliance
According to Binance’s regional manager, Ilir Laro, the exchange remains compliant with regulations in five European countries, including France, Italy, Spain, Poland, and Sweden. Laro emphasized that Binance is focusing on preparing for the implementation of the Markets in the Crypto Assets (MiCA) regulatory framework in Europe.
Binance had previously faced regulatory issues in the UK when the FCA instructed the exchange to halt all regulatory activities in the country. However, BML, the subsidiary in question, had never engaged in any regulated business in the UK since its acquisition by Binance Group in 2020.
Aside from the UK, Binance has encountered regulatory setbacks in countries such as Cyprus, the Netherlands, and Nigeria. Binance withdrew its VASP registration in Cyprus as it prepares for the implementation of MiCA. In the Netherlands, the exchange ceased offering services due to the lack of a local license. The regulatory complaint in Nigeria targeted “Binance Nigeria Limited,” which is not owned by Binance.
The recent withdrawal of Binance’s registration in the UK comes amidst ongoing legal challenges in the United States. The exchange is facing civil lawsuits from regulators, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Despite these obstacles, Binance’s chief strategy officer, Patrick Hillmann, previously expressed the company’s commitment to being regulated in the UK.
