In a recent announcement, Binance, one of the world’s largest cryptocurrency exchanges, revealed that its United Kingdom subsidiary, Binance Markets Limited (BML), has canceled its registration with the Financial Conduct Authority (FCA) of the UK. The decision was made as BML held various FCA permissions for activities it had never engaged in or offered within the UK market.
According to a spokesperson from Binance, the permissions held by BML were deemed unnecessary for future operations. Thus, in accordance with the FCA’s recommendations to maintain updated authorizations, Binance Markets Limited decided to cancel them. The FCA’s official website confirmed the revocation, stating that the firm was “no longer authorized” as of May 30. Additionally, Binance no longer has an authorized entity listed on the FCA’s website for the UK.
It is important to note that the cancellation of BML’s registration does not impact the operations of Binance itself since the exchange had never conducted business within the UK. The spokesperson clarified that Binance.com, the primary platform of the exchange, does not provide any crypto services in the UK and is only available to UK consumers on a reverse solicitation basis.
The withdrawal of registration from the UK market is part of a series of recent deregistrations by Binance in European countries. In 2021, the FCA had issued a warning that Binance was prohibited from operating in the UK. The regulatory body also expressed concerns regarding a partnership agreement that the exchange had entered into in 2022.
Prior to exiting the UK market, Binance had also withdrawn from the Netherlands and Cyprus. The exchange failed to secure registration as a virtual asset service provider (VASP) in the Netherlands and decided to focus on its larger markets in other European countries like France.
Binance’s sub-regional manager for growth in the UK and Europe, Ilir Laro, highlighted the presence of five regulated entities in France, Italy, Spain, Poland, and Sweden. Laro further noted that Binance aims to prepare for the implementation of the Markets in Crypto Assets (MiCA) regulation, which is expected to take effect in 2024/2025, by consolidating operations to facilitate passporting throughout Europe.
As Binance continues to navigate regulatory landscapes across different jurisdictions, the exchange is strategizing its operations to comply with evolving regulations and ensure seamless provision of its services to users worldwide.
