Binance Withdraws Registration for Inactive Business in the UK

Please note that the following article is based on available information and Binance’s response to Cointelegraph. Updates or clarifications may arise regarding Binance’s regulatory situation.

Cryptocurrency exchange Binance continues to face regulatory challenges, resulting in its withdrawal from various major markets.

Binance Markets Limited (BML), the United Kingdom-based subsidiary of Binance, has officially canceled its registration with the Financial Conduct Authority (FCA).

According to a spokesperson from Binance, BML had obtained FCA permissions for activities that were never utilized or offered in the UK. In line with the FCA’s recommendations, Binance decided to cancel these permissions as they were unlikely to be required in the future.

The FCA confirmed the completion of BML’s cancellation request on May 30, 2023. As a result, no Binance entity is currently authorized by the FCA to provide services in the United Kingdom, as stated on the regulator’s website.

Binance clarified that the cancellation of BML’s registration does not impact its operational activities. Binance.com, the primary platform, does not own or operate any cryptocurrency services in the UK and is solely available to UK consumers on a reverse solicitation basis.

Binance’s spokesperson also highlighted that the company still maintains five regulated entities in Europe, including France, Italy, Spain, Poland, and Sweden. The executive mentioned that Binance is preparing for the implementation of the Markets in Crypto-Assets Regulation (MiCA) in 2024/2025, which requires consolidating operations for passporting throughout Europe.

The recent cancellations of registrations in countries like Cyprus, the Netherlands, and Nigeria were also mentioned, with Binance referring to strategic decisions based on regulatory considerations.

It is worth noting that Binance had faced regulatory issues in the UK previously. In 2021, the FCA ordered Binance to cease all regulated activities within the country.

These developments come at a time when Binance is dealing with legal challenges in the United States, as it faces civil lawsuits from regulators such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Despite these challenges, Binance’s Chief Strategy Officer, Patrick Hillmann, recently expressed the company’s commitment to regulatory compliance in the UK. The situation remains fluid, and further updates regarding Binance’s regulatory status may emerge as the company addresses its ongoing legal matters.

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