Binance continues to grapple with regulatory challenges as it exits the Dutch and Cypriot markets. The latest development is that the request for deregistration of Binance Markets Limited has been approved by the UK Financial Conduct Authority (FCA). Thus, it is highlighted that Binance is no longer an FCA authorized entity. Accordingly, it no longer has any authority to provide regulated services in the UK.
Binance exits the UK
According to the UK Financial Conduct Authority (FCA), the institution approved Binance’s request to deregister Binance Markets Limited on May 30. Binance no longer has any authority from the FCA to provide legal services in the country.
Ilir Laro, Binance’s head of growth in the UK and Europe, made a statement on the subject. Accordingly, he states that the deregistration of Binance Markets Limited does not affect Binance operations. Because he never emphasized that Binance does not offer services in the country and has no users. The firm was previously authorized by the FCA or PRA. Therefore, it has issued a warning against Binance Markets Limited. It was the focus that the firm did not obtain prior authorization from the FCA. There were allegations of providing services without permission.
legal battles
Binance has been at war with UK regulators since launching its crypto service in 2020. In March, Binance made the move after its local partner Paysafe terminated its operating deals. Accordingly, it has also stopped Sterling withdrawals and deposits for UK customers. According to Kaiko data, the exchange previously made up the majority of Pound-denominated crypto volume until it lost its banking partner.
Binance, on the other hand, is facing two lawsuits in the US, one by the Securities and Exchange Commission (SEC) and the other by the Commodity Futures Trading Commission (CFTC). Experts point out that the Ministry of Justice may soon file a lawsuit against the crypto exchange.
Is the largest crypto exchange in the EU losing ground?
The stock market, which is in a legal battle in the USA, is struggling to achieve legal clarity in European countries. However, the latest move by the largest crypto exchange has left users to ponder the uncertain future of the digital assets market. However, Binance has only managed to get approval to operate in an EU country under the current regulatory regime. The exchange has received such approvals in France, Italy, Poland, Lithuania, Spain and Sweden.
As Kriptokoin.com we have mentioned before, the Dutch central bank De Nederlandsche Bank (DNB) fined Binance $3.3 million for operating without registration. It has also now decided not to allow the largest crypto exchange with a VASP license to operate. Cryptocurrency exchange has decided to withdraw from the country. Binance CEO Changpeng Zhao (CZ) responded to the criticism that the issue was about fines. He stressed that it was not about money.
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