Binance Holdings Ltd. encounters obstacles in its attempt to re-enter the UK market, grappling with hesitancy from local partners amidst regulatory opposition. The Financial Conduct Authority (FCA) has expressed concerns to UK firms authorized for crypto communications, resulting in refusals to engage with Binance.
Here’s more you need to know about this.
Regulations Continue to Pose a Challenge
Despite CEO Richard Teng’s diligent efforts to restore global trust, Binance continues to wrestle with persistent regulatory challenges. The FCA’s reservations highlight the uphill struggle the cryptocurrency giant faces in securing partnerships, particularly following the resignation of its founder, changpeng zhao
changpeng zhao
founder and ceo at Binance
Changpeng Zhao is the Founder and Chief Executive Officer at Binance.His contribution to the enhancement of Binance made the platform world’s largest cryptocurrency exchange since its inception in 2017. Zhao launched the blockchain network Binance Smart Chain which has made a remarkable contribution to the development of the decentralized finance ecosystem. Whereas in 2019, he launched Binance’s US affiliate, Binance.US.
He is commonly known as CZ, a Chinese-Canadian Business Executive who has been ranked 113th richest in the globe as of 2022. In the past, he founded Fusion Systems, a trading system for brokers famous for some of the fastest high-frequency trading systems for brokers. Zhao has served as a member of the team that developed Blockchain.info and played the role of Chief Technology Officer of OKCoin, a secure cryptocurrency exchange platform for Bitcoin, Ethereum, Dogecoin, and other crypto assets.
EntrepreneurInvestorChief Executive Officer
, amid a substantial $4.3 billion penalty settlement with US authorities.
At least three UK firms, operating under Section 21 rules, have rejected Binance’s requests to approve communications with clients. The influence of the FCA on these rejections amplifies the prevailing skepticism surrounding Binance’s operations, intensifying the hurdles to its market re-entry.
Read More: Binance GitHub Leak Investigated – What You Need to Know
Post-Termination Setback
Binance had to suspend access for new UK customers in October after the FCA terminated its agreement with Rebuildingsociety.com. The reluctance of local partners further complicates Binance’s endeavor to re-establish its presence in the UK market.
Denials, Negotiations & More
Binance, however, denies claims of being rebuffed, asserting ongoing discussions with potential partners. A spokesperson for the FCA declined to comment, maintaining silence on the matter. Binance remains optimistic, stating,
“We continue to have productive conversations with potential approvers and are confident that we will be able to provide a positive update soon.”
Binance has faced global regulatory scrutiny, notably in the US, with penalties incurred for violating sanctions and anti-money laundering laws. Founder Zhao’s current legal situation adds another layer of complexity to Binance’s global operations.
Did You Know? Changpeng Zhao’s $4.5 Billion Bail Offer Rejected for UAE Travel
