Binance Wants To be Back in the UK under the FCA Regulation
Binance is keen to be back in the UK with a regulatory license from the Financial Conduct Authority (FCA). The financial watchdog banned operations of the crypto exchange in June due to several complaints.
The reasons behind this ban were things like the fact that Binance doesn’t have a headquarters or address. Additionally, the company structure is opaque and difficult to supervise. As a result, the FCA announced that Binance no longer held any form of license, authorization, or registration to offer its services.
The setback forced Binance to review its strategy. It took several steps and planned to apply for registration in May. However, the company wasn’t able to meet the money laundering requirements of the FCA.
Binance Plans to be Back by 2023
CEO of Binance, Changpeng Zhao, told The Telegraph his plans for a comeback in 2023. He said the exchange wanted to become a registered crypto firm under the FCA. It could take them six to twelve months to seek approval and gain a license.
Zhao also said that they had hired several compliance experts to work with regulatory bodies worldwide. The list includes ex-regulatory staff like Mark McGinness from Dubai Financial Services Authority. The former head of international relations is now the chief regulatory liaison officer at Binance.
Zhao also mentioned that the company have hired more than two hundred compliance staff. Now they plan to work on their product offerings and internal processes to meet UK’s regulations. In addition, the company is making considerable changes in its organizational structure. He is also counting on the advice of the regulatory experts to navigate the hurdles of compliance issues.
On the upside, Zhao said Binance’s relationship with FCA is currently on positive terms. The company also asked for meetings with the representatives of the organization to further their cause. The two parties are also in communication to sort matters out.
The office in Britain with local compliance staff can help Binance to operate legally in the UK. The exchange will be able to follow the steps of its US strategy and form a separate unit like Binance US.
Binance Aims for Global Compliance
This is not the first time Binance has come under the radar of regulatory agencies. In the past, Thailand, Canada, Germany, Japan and other countries have issued notices against the crypto exchange. The UK is the latest addition to the list and prompted quick action on the part of Binance. The company is now doubling the size of its compliance team to counter the challenges.
Zhao told The Telegraph that Binance wants to establish its presence in the UK in a fully compliant way. He will get the license to serve users in the region and offer a wide range of products. And so, the cryptocurrency exchange will be able to legally offer derivatives and futures in the UK.
However, to get the seal of approval from the FCA is yet to be gained.
Several nations are looking to bring cryptocurrency under regulation and we are likely to see many more crypto exchanges or services coming under scrutiny from regulatory bodies. The future is uncertain at this point, but crypto investing can become more secure.