Binance cancels registration in the UK amid regulatory scrutiny

Troubled cryptocurrency exchange Binance continues to withdraw from major markets amid the ongoing pushback from global regulators.

Binance Markets Limited (BML), Binance’s United Kingdom-based subsidiary, has officially canceled registration with the Financial Conduct Authority (FCA).

After deregistration, no Binance entity is authorized by the FCA to provide any services in the United Kingdom, the regulator stated on its website.

According to the FCA, the authority completed Binance’s cancellation request of BML’s permissions with the authority on May 30, 2023.

“Following the completion of the cancellation of permissions the firm is no longer authorised by the FCA,” the regulator noted in an update on June 7.

The cancellation of BML’s registration did not have an operational impact on Binance, as it had never been operational in the country, a regional manager at Binance reportedly said.

Ilir Laro, Binance’s sub-regional manager for growth in the U.K. and Europe, argued that BML has never conducted “any type of regulated business” in the United Kingdom. He added:

“BML was successfully acquired back in 2020 by Binance Group, intended to launch a regulated business in the UK. This attempt was not successful, however, and has since then remained dormant since its acquisition.”

Laro took to Twitter on Sunday to also point out that Binance still holds five regulated entities in Europe, including France, Italy, Spain, Poland and Sweden. “As MiCA kicks into force in 2024/5, we are moving focus to getting ready which means some consolidating in order to passport throughout Europe,” he noted.

Related: Binance under investigation in France since February 2022: Report

The exec also mentioned the reasoning behind Binance’s regulatory retreats in countries like Cyprus, the Netherlands and Nigeria.

Some more FUD. Let’s address it:

Cyprus – we have withdrawn our VASP registration as we prepare for MiCA

Holland – we have stopped offering services due to not obtaining a local license

Nigeria – the complaint is against “Binance Nigeria Limited” which is not owned by Binance

— Ilir Binance (@ilir_laro) June 18, 2023

Binance previously had some regulatory issues in the United Kingdom. In 2021, the FCA ordered Binance to stop all regulatory activities in the country.

The news comes shortly after Binance’s chief strategy officer Patrick Hillmann expressed the company’s commitment to be regulated in the U.K. amid Binance’s issues in the United States. As previously reported, Binance is facing two civil lawsuits from U.S. regulators, including the Securities and Exchange Commission and the Commodity Futures Trading Commission.

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