Binance Declares As Compliant By The UK Financial Conduct Authority

Kavya  |  Aug 26, 2021

The Financial Conduct Authority (FCA) has ordered Binance Markets Limited (Binance's UK subsidiary) to suspend all regulated activities in the country. It's unclear whether the FCA declaration would affect Binance's ability to offer spot trading to UK customers.

Binance vs. Regulators

The UK regulator was among the first to raise concerns about Binance's operations in the nation. This came after a slew of warnings from regulators all around the world against the Bitcoin exchange.

While the majority of the warnings simply advised investors to avoid Binance's unregulated operations, several agencies went so far as to initiate an enforcement action. 

The Thai SEC filed a criminal complaint against the cryptocurrency exchange for operating in the nation, while the Malaysian authority issued an ultimatum for the exchange to leave the country.

Many other European agencies are suspicious about Binance's derivatives offers.

UK Financial Conduct Authority Declare Binance As Compliant

Meanwhile, Binance CEO confessed that dealing with authorities had not been the exchange's "strong suit," and it had taken extraordinary measures to comply with local regulations. 

The cryptocurrency exchange withdrew from Malaysia before the deadline, and it also prohibited providing derivatives in several locations, including Hong Kong, Australia, Germany, Italy, and the Netherlands.

After several European regulators raised concerns about a probable breach of local securities market laws, the exchange completely discontinued selling stock token services.

Though the British regulator declared that the exchange is now compliant in its most recent report, it did not provide any further specifics.

Binance also increased its compliance efforts by appointing several former regulatory and government officials to senior positions.

The FCA's Registration System

The United Kingdom created a registration framework for crypto exchanges in 2020, stating that they must obtain authorization before providing any crypto services in the nation. 

However, the deadline for registering exchanges has been pushed back several times because just a few businesses have managed to register.

The FCA is known to question crypto companies before registering them. To date, the regulator has only licensed five cryptocurrency companies: two Gemini businesses, Archax, Ziglu, Digivault, Diginex's custody company, and Mode Global Holdings.

Binance, a cryptocurrency exchange, has announced intentions to launch a subsidiary in the United Kingdom in 2020. 

Last month, the firm withdrew its application to become a registered cryptocurrency company with the UK's Financial Conduct Authority FCA. 

Binance Markets Limited will be the name of the company.

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