London, Monday, February 12, 2024 – Binance, the global cryptocurrency exchange, faces significant challenges in its ongoing attempt to re-enter the UK market, reports said last week. 1
According to the recent Bloomberg report, the exchange has not yet secured a new UK partner authorized to approve financial promotions, a crucial requirement for operating in the country.
Bloomberg said in its report that the local companies are “reluctant” to work with Binance because of the regulations laid out by the Financial Conduct Authority.
Following the expanded Section 21 rules implemented last year, the majority of digital-asset service providers must collaborate with third-party entities to provide services within the country.
Binance responded to the FCA’s termination of its agreement with then-partner Rebuildingsociety.com by suspending access for new UK customers in October.
In May 2023, Binance officially canceled its registration with the UK’s Financial Conduct Authority (FCA), withdrawing from regulatory permissions for activities not offered in the UK. This move followed regulatory scrutiny and warnings from the FCA regarding compliance concerns.
Despite canceling its registration, Binance has expressed intent to re-enter the UK market under stricter compliance measures. However, securing a necessary partner authorized to approve financial promotions has proven difficult.
The stance of the Financial Conduct Authority (FCA) underscores the formidable challenge facing Binance Chief Executive Officer Richard Teng.
He assumed leadership in November with the mandate to rebuild trust among regulators globally. Teng took over the top position following the resignation of founder Changpeng ‘CZ’ Zhao, who stepped down as part of an agreement with US authorities.
This agreement involved Binance agreeing to pay $4.3 billion in penalties.
- Binance: https://tinyurl.com/3bxtu8zh[↩]
