Binance Withdraws Permissions Granted by UK Regulator
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Leading cryptocurrency exchange Binance has voluntarily canceled several permissions granted to its UK unit by the UK’s top financial regulator, according to an update on the regulator’s website. The move comes as Binance Markets Limited decided to withdraw permissions for activities it never carried out or offered in the UK. The company clarified that this decision will not affect Binance.com, which does not operate any crypto services in the UK except for UK consumers on a reverse solicitation basis.
Here’s What Happened
Binance Markets Limited, following the recommendations of the Financial Conduct Authority (FCA), opted to cancel permissions that were deemed unnecessary for future operations.
A spokesperson for the giant exchange confirmed the withdrawal, emphasizing that it aligns with the FCA’s guidelines. As a result, Binance Markets Limited is no longer authorized by the FCA. The regulatory action does not impact Binance.com, as the website does not own or operate any crypto services within the UK It remains available to UK consumers through reverse solicitation.
Binance Is Navigating Several Regulatory Challenges
In recent developments, the behemoth exchange has also decided to withdraw its registration with a regulator in Cyprus, citing a shift in focus toward fewer European jurisdictions due to the EU’s new Markets in Crypto Assets (MiCA) regulation. Furthermore, the company has exited the Netherlands after failing to obtain regulatory approval in the country.
Meanwhile, the exchange’s US unit and its founder, Changpeng “CZ” Zhao, face a lawsuit from the US Securities and Exchange Commission (SEC) related to alleged securities sales and the operation of an unregistered trading platform. Additionally, French authorities have been investigating the exchange for “aggravated money laundering” since at least 2022.
Conclusion
With the voluntary withdrawal of permissions granted by the FCA, Binance Markets Limited is no longer authorized by the UK regulator. However, this decision has no impact on Binance.com’s availability to UK consumers. The exchange continues to navigate regulatory challenges in various jurisdictions while adjusting its strategic focus.
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