Binance Explores UK Regulation Amidst US Crypto Crackdown, Recognizing Challenging US Business Environment
Binance, a prominent cryptocurrency exchange, has acknowledged the difficulties posed by the crackdown on cryptocurrencies in the United States. As a result, the company is now actively seeking regulatory measures in the United Kingdom to navigate the changing landscape and ensure smoother operations.
During the Financial Times’ Crypto and Digital Assets Summit, Patrick Hillmann, the company’s chief strategy officer, expressed that the past six months have been quite confusing for the U.S. He added that the recent actions taken by the Securities and Exchange Commission (SEC) against rival exchange Coinbase for allegedly violating securities laws are an indication of how “the U.S. right now is in this strange place.”
Hillmann, acknowledging the challenging and uncertain regulatory environment in the United States over the past six months, particularly with the SEC’s actions against Coinbase, emphasized Binance’s dedication to pursuing regulation in the United Kingdom. He expressed the company’s commitment to taking every necessary step to ensure compliance and regulatory oversight in the UK market.
This is a significant change in tone from his earlier statement that the current crackdown on crypto had made it difficult to do business in the U.S. It is worth noting that Binance had previously clashed with London regulators over its failure to provide essential information about its business activity, which led to regulators suggesting the exchange was unregulatable.
In 2021, the Financial Conduct Authority (FCA) issued an order requiring the company to cease all regulated activities in the UK. Some industry groups have criticized UK officials for being overly cautious towards fintech and cryptocurrency companies.
A representative from Binance stated that the company adheres to regulations concerning money laundering and terrorism financing in the U.K. They explained that Binance achieves compliance through its compliance program, which utilizes anti-money laundering and global sanctions principles and tools employed by financial institutions to detect and address any suspicious activity.
Binance has announced its successful acquisition of approvals and registrations through its compliance program in several jurisdictions worldwide, including New Zealand, Dubai, France, Italy, and Spain. This achievement reflects the exchange’s commitment to meeting regulatory requirements and expanding its operations globally.
Binance has been the target of U.S. regulators clamping down on perceived illicit activity this year. In March. the Commodity Futures Trading Commission (CFTC) brought a lawsuit against the group, alleging it had been operating illegally in the country and had broken the law by extensively soliciting U.S. customers. At the time, Binance called the CFTC complaint “unexpected and disappointing”.