Binance Plans to Open New Unit in UK despite Regulatory Issues with FCA

UTC by Sanaa Sharma · 3 min read
Binance Plans to Open New Unit in UK despite Regulatory Issues with FCA
Photo: Unsplash

Following the nod of FCA in the UK, Binance would be allowed to furnish its users with products such as futures and derivatives.

Chief Executive Officer of Binance Changpeng Zhao has decided to expand in the UK in the upcoming 6-18 months, notwithstanding the instructions by the nation’s regulatory committee to stop its operations earlier this year.

As the major governments of the world are trying to gradually regulate the cryptocurrency universe of the Blockchain, Binance witnessed growing criticism from some of the regulatory committees. In June this year, United Kingdom’s Financial Conduct Authority (FCA) disallowed Binance to continue its operations in Britain.

As a registered crypto exchange firm in the United Kingdom, a company must approve of the money laundering and terrorist financing controls implemented by the regulatory board. To achieve the above-mentioned prerequisites, the company’s CEO CZ plans to establish another subsidiary of Binance in the UK, similar to its Binance US unit.

In a conversation with Telegraph on December 4th, Changoeng Zhao mentioned his plans to register for an FCA license. The company has also recruited several ex-regulatory staff, with “hundreds of compliance people” from the UK who would possibly feature the regulations and mandates into the company’s present work ecosystem.

In October this year, the world’s largest cryptocurrency exchange hired Mark McGinness, the former head of Internation Relations at the Dubai Financial Services Authority (DFSA), as its chief regulatory liaison officer. The recruitment of McGinness was carried out to ensure that the company maintains diplomatic relations with the international regulatory bodies. Zhao, following the appointment, stated that this was a “huge step forward” for Binance, with the company trying to steer clear of the strong crypto regulatory climate.

Changpeng Zhao also highlighted that the company is going through a significant re-engagement, with the experts fixated on making massive changes in some of the internal processes as well as the product offerings.

In retrospect, the cryptocurrency exchange giant and the UK regulatory committee have observed a not-so-warm relationship over the years. In July this year, the FCA slapped a few warnings to Binance users. The reluctance from the government’s side has been noticed in many countries across Europe. To gain more audience on the crypto front, Zhao has launched several operations to entice the public. The company opened up a research hub and accelerator in France with a non-profit French Fintech that was valued at $116 Million.

Following the nod of FCA in the UK, Binance would be allowed to furnish its users with products such as futures and derivatives. Following the regulatory environment in Australia in September, the crypto firm had to implement a deadline for the Australian users to pack up and close their futures, options, and leveraged tokens in 90 days. The company has also stopped its derivatives trading services in Germany, Italy and, the Netherlands.

While the firm has deemed all the allegations of market manipulation baseless, it has suffered opposition from a number of authorities in Germany, Malaysia and, South Korea.

Altcoin News, Binance News, Blockchain News, Business News, Cryptocurrency news
Sanaa Sharma
Author Sanaa Sharma

Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.

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