As it has never conducted business in the UK, Binance’s deregistration with the FCA had no operational consequence, according to a regional manager.
Binance, a cryptocurrency exchange that has encountered regulatory issues around the world, has continued to strategically exit important areas in response to mounting resistance from international regulators.
The United Kingdom-based subsidiary of Binance, Binance Markets Limited (BML), has formally withdrew from the Financial Conduct Authority (FCA), the nation’s financial watchdog.
The FCA reiterated on its website after the deregistration that no Binance company is permitted to provide any services in the UK.
According to the regulatory body’s report on June 7th, the FCA concluded the procedure to cancel BML’s permits with the authority on May 30, 2023.
It should be emphasized that because BML’s subsidiary had never started operating in the United Kingdom, the termination of BML’s registration had no immediate operational impact on Binance. This information was verified by a regional manager at Binance.
The subregional manager for growth in the UK and Europe at Binance, Ilir Laro, asserted on Twitter that BML has never conducted any regulated commercial activity in the UK.
Laro added that Binance continues to operate five regulated organizations in Europe, namely in France, Italy, Spain, Poland, and Sweden. He emphasized that the business is concentrating on getting ready for the Markets in Crypto-Assets Regulation (MiCA) to go into effect in 2024 or 2025, which calls for some consolidation to ensure compliance and smooth operations throughout Europe.
It’s important to note that Binance ran into regulatory problems in the UK in 2021 when the FCA ordered the exchange to stop all regulated operations there.
Binance has continued to address regulatory issues with the move to revoke BML’s FCA registration, enabling the business to strategically restructure its operations and adhere to changing regulatory frameworks in various locations.