Binance Faces Hurdles in UK Return Amid Regulatory Reluctance

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Binance Holdings Ltd.’s attempt to re-enter the UK market faces setbacks as local partners hesitate to collaborate due to regulatory opposition. The Financial Conduct Authority has expressed concerns to UK firms authorized for crypto communications, leading to refusals to work with Binance.

Regulatory Hurdles

Despite Binance’s efforts to rebuild trust globally under CEO Richard Teng, regulatory challenges persist. The FCA’s reservations highlight the difficulty in securing partnerships for Binance, especially after its founder, changpeng zhao changpeng zhao founder and ceo at Binance Changpeng Zhao is the Founder and Chief Executive Officer at Binance.His contribution to the enhancement of Binance made the platform world’s largest cryptocurrency exchange since its inception in 2017. Zhao launched the blockchain network Binance Smart Chain which has made a remarkable contribution to the development of the decentralized finance ecosystem. Whereas in 2019, he launched Binance’s US affiliate, Binance.US.   He is commonly known as CZ, a Chinese-Canadian Business Executive who has been ranked 113th richest in the globe as of 2022. In the past, he founded Fusion Systems, a trading system for brokers famous for some of the fastest high-frequency trading systems for brokers. Zhao has served as a member of the team that developed Blockchain.info and played the role of Chief Technology Officer of OKCoin, a secure cryptocurrency exchange platform for Bitcoin, Ethereum, Dogecoin, and other crypto assets. EntrepreneurInvestorChief Executive Officer , resigned amid a $4.3 billion penalty settlement with US authorities.

At least three UK firms, authorized under Section 21 rules, rejected Binance’s requests to approve communications with clients. The FCA’s influence on these rejections underscores the ongoing scepticism surrounding Binance’s operations.

Binance suspended access for new UK customers in October after the FCA terminated its agreement with Rebuildingsociety.com. The reluctance of local partners further complicates Binance’s re-entry into the UK market.

Binance’s Response

Binance denies claims of being rebuffed, asserting ongoing discussions with potential partners. Binance affirmed, “We continue to have productive conversations with potential approvers and are confident that we will be able to provide a positive update soon.” A spokesperson for the FCA declined to comment. However, the FCA remains silent on the matter.

Binance faced regulatory scrutiny globally, with its US deal involving penalties for violating sanctions and anti-money laundering laws. Founder Zhao’s current legal situation adds complexity to Binance’s global operations.

In conclusion, Binance’s struggle to re-establish a foothold in the UK highlights the enduring challenges in gaining regulatory approval and local partnerships.