Binance Markets Limited (BML), the UK subsidiary of the world’s leading cryptocurrency exchange, has actively revoked the permissions it previously held with the Financial Conduct Authority (FCA).
These permissions, which were primarily associated with non-crypto-related activities, have now been canceled, resulting in BML’s inability to offer regulated activities and products beyond the realm of cryptocurrencies. The regulatory statement confirms that BML’s withdrawal of permissions restricts its capability to provide regulated services and products in compliance with the applicable regulations.
FCA Highlights Binance’s Unauthorized Operations in the UK
Binance’s subsidiary in Britain, known as Binance Markets Limited (BML), has formally submitted a request to cancel its regulatory authorization. On June 7, the Financial Conduct Authority (FCA) of the United Kingdom confirmed that the request was processed and completed on May 30, 2023. As a result of this cancellation, the FCA’s Financial Services Register indicates that BML “can no longer provide regulated activities and products” within the UK.
The FCA provided an update on its interactions with BML, stating that following the completion of the cancellation of permissions, the company is no longer authorized by the FCA. Notably, among all the entities within the Binance Group, only Binance Markets Limited held authorization or registration to conduct regulated business in the United Kingdom, as listed on the FCA’s official website.
Even before the cancellation of its authorization, BML was already prohibited from operating in the UK. Since June 25, 2021, the FCA had imposed specific requirements on the company, preventing it from engaging in any regulated activities without obtaining prior written consent. Furthermore, the FCA issued a supervisory notice two years ago, highlighting that the Binance Group had been offering a range of products and services to UK customers through the website Binance.com, without proper authorization.
Warnings to British Traders
As a consequence of the unauthorized operations conducted by the Binance Group in the UK, the FCA has repeatedly cautioned British citizens against trading on the exchange. The regulatory authority emphasized the risks associated with utilizing services provided by unregulated entities and urged individuals to exercise caution when engaging in cryptocurrency transactions.
With the withdrawal of regulatory authorization, BML’s ability to offer regulated activities and products in compliance with UK regulations has been curtailed. The cancellation request signifies a significant shift in Binance’s operations within the United Kingdom, restricting its presence in the regulated financial market.
Binance Faces Regulatory Challenges as License Restructuring Initiatives Unfold and Its Possible Measures
Amid mounting regulatory pressures from authorities across multiple jurisdictions, the world’s largest cryptocurrency exchange, Binance, has faced a setback with the cancellation of one of its licenses. This development follows heightened scrutiny by regulatory bodies, including the Securities and Exchange Commission (SEC) in the United States. Binance’s American subsidiary was sued by the SEC for alleged violations of securities laws. However, a recent agreement with the SEC prevented the freezing of Binance US’s assets.
In Europe, Binance has taken proactive measures to streamline its operations and adapt to upcoming regulatory changes. With the impending implementation of the European Union’s Markets in Crypto Assets (MiCA) legislation, the exchange has begun consolidating its subsidiaries seeking regulated status in various jurisdictions. The aim is to maintain a focused presence in select EU countries such as France, Italy, and Spain, which have established regulatory frameworks. This strategic move allows Binance to align its operations with the evolving regulatory landscape.
Continuing with its restructuring efforts, Binance recently announced its decision to exit the Dutch market. The exchange encountered obstacles in registering as a crypto service provider, leading to fines imposed by the central bank of the Netherlands for operating without proper registration. Additionally, Binance’s entity in Cyprus has applied for removal from the country’s register of digital asset service providers.
These developments highlight Binance’s proactive response to regulatory challenges, as the company seeks to ensure compliance with evolving requirements in the crypto industry. By strategically focusing on jurisdictions with established regulatory frameworks, Binance aims to reinforce its commitment to operating within legal boundaries.
Binance has recently declared the termination of its operations in the Netherlands. This decision comes as a result of Binance’s failure to obtain the necessary virtual asset service provider (VASP) license required to conduct business in the country.
Final Thought
Binance Markets Limited (BML), the UK subsidiary of the leading crypto exchange, has actively revoked its permissions with the Financial Conduct Authority (FCA). This cancellation effectively limits BML’s capacity to provide regulated activities and products beyond the scope of cryptocurrencies. The withdrawal of permissions restricts BML’s ability to comply with applicable regulations and offer regulated services in the UK.