Thomas Daniels
Binance is encountering obstacles in its efforts to re-establish a presence in the U.K. market, with potential local collaborators hesitating due to concerns raised by regulatory authorities.
Sources close to the situation, who chose to remain anonymous, informed Bloomberg that in recent months, three U.K.-based firms, licensed to facilitate interactions between cryptocurrency platforms and their users, have turned down approaches from Binance. According to U.K. law, for Binance to manage financial advertisements, it needs the support of a company approved by the Financial Conduct Authority (FCA), ensuring compliance with the FCA’s strict regulations on public communications.
Despite these challenges, Binance is optimistic about finding a suitable partner that meets regulatory requirements. The company dismissed the notion that partnering with FCA-sanctioned firms has been difficult. Speaking to Bloomberg, Binance expressed that it is in active discussions with potential partners and anticipates announcing encouraging news shortly.
The crypto powerhouse had previously retracted its application for FCA registration through its subsidiary, Binance Markets Limited, in May 2023. This decision was made after choosing not to seek regulatory clearance for certain services it initially did not intend to provide in the U.K., resulting in no Binance-affiliated entity having authorization from the FCA to operate in the country.
Binance’s endeavors in the U.K. are further complicated by legal issues in the U.S., where the Securities and Exchange Commission (SEC) filed a lawsuit against both Binance and its CEO, Changpeng Zhao, in June 2023. Both parties have admitted guilt, leading to one of the industry’s most substantial settlements, amounting to over $4 billion. Meanwhile, Zhao is awaiting his trial.
