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Binance, the largest cryptocurrency exchange platform by trading volumes, is moving towards the UK market again. This comes after the exchange faced a regulatory crackdown by the Financial Conduct Authority (FCA) earlier this year.
Binance has faced several regulatory crackdowns this year. The several bans on this exchange all started with the FCA. After this, regulators shut down Binance operations in other countries, including Singapore.
The CEO of Binance, Changpeng Zhao, talked about moving back to the UK during an interview with The Telegraph. Zhao stated that the exchange was aspiring to become a fully registered crypto firm in the UK.
Zhao noted that re-launching Binance operations in the UK under a dedicated subsidiary would take around six to eighteen months.
the Binance CEO stated.
Zhao also spoke about Binance having a headquarters and physical locations. He noted that it was hard for the organization to work with regulators because it operated as a decentralized unit.
Zhao noted that to ease the exchange’s interaction with regulators, the company was setting up
In the UK matter, Binance stated that the exchange had hired employees in the UK to evaluate matters of legality and compliance.
Binance regulatory problems started in the mid of the year. Earlier in June this year, the FCA commenced its crackdown on Binance. The regulator asked Binance to clearly state on its website that it did not have the appropriate licenses to operate in the UK.
Binance is also facing another regulatory issue in Singapore, where it is halting its operations. The Monetary Authority of Singapore (MAS) has initially stated that Binance failed to comply with the local laws and should halt its operations in the country.
After the MAS warning, Binance issued a notice to its Singapore clients stating that they would no longer be permitted to buy and sell cryptocurrencies on the exchange.
Binance also faced another ban in Malaysia. The Malaysian financial market regulators stated that Binance continued to operate in the country despite a lack of compliance. The Malaysian regulator also stated that it would file charges against the exchange.
Another report has also stated that Binance faces scrutiny in the US for money laundering charges. While formal charges are yet to be filed against the exchange regarding this matter, Binance could end up being forced to rethink its US operations.
Binance is also shutting down its operations in China. However, the regulatory crackdown in China has affected all exchanges, as the country announced a ban on cryptocurrency trading and mining. Binance announced that it would no longer allow new users to sign up on the exchange, and it would gradually phase out the existing users.
With the series of regulatory crackdowns, Binance has been forced to change its mode of operations. The exchange has hired former government officials to its compliance and regulatory positions. Moreover, the exchange’s CEO had earlier stated that he was willing to step down to pave the way for a well-versed CEO with regulations.