Binance to become a registered UK firm, despite regulatory crackdowns
Despite being ordered to cease trading in June, Binance’s CEO still plans to expand to the U.K. in the next six to 18 months.
In June, the U.K.’s Financial Conduct Authority (FCA) revoked Binance’s ability to trade in Britain, as part of a regulatory crackdown on crypto exchanges. The watchdog claimed that Binance was not authorised to operate in the UK and that it had failed to answer basic questions about its structure.
However, according to Changpeng Zhao, Binance’s CEO, relations with the regulator have improved since.
“We’re fully re-engaged there,” Zhao said. “We’re making a number of very substantial changes in organisational structures, product offerings, our internal processes, and the way we work with regulators.
“We want to continue to establish a presence in the UK and serve UK users in a fully licensed and fully compliant manner.”
To become a registered crypto asset firm in the UK, the platform must abide by money laundering and terrorist financing controls. To meet these requirements, Zhao indicated that one solution would be to set up a separate company, similar to a US exchange it created in 2019.
Having hired a team of compliance officers and former employees of the watchdog, Binance plans to apply for an FCA license.
With approval from the FCA, Binance could offer products such as derivatives and futures in the UK.
In October, the exchanged hired the former head of international relations at the Dubai Financial Services Authority (DFSA). as its chief regulatory liaison officer to contribute to facilitating better relations with international regulatory bodies.