FCA Approves Binance’s De-registration, Disrupting Services For UK Users

• UK regulator FCA approved Binance’s request for de-registration, restricting access to its services in the country.
• The exchange and its subsidiaries lack authorization for regulated activities in the UK.
• Binance withdrew its Cyprus VASP registration and halted services in the Netherlands due to licensing issues.

Earlier today, the UK Financial Conduct Authority (FCA) approved leading crypto exchange Binance’s request to de-register the company’s UK unit. As a result of the heavy examination by regulators, users across the UK didn’t have any access to Binance’s services.

According to the FCA, after the cancellation of permissions, none of the entities within the Binance Group possess any UK authorization or registration to engage in regulated activities within the country.

The chain of events started when the UK regulator raised concerns regarding the local subsidiary of Binance, leading to similar warnings issued by various financial market watchdogs worldwide, in mid-2021.

Meanwhile, Binance’s sub-regional manager for growth in the UK and Europe, Ilir Laro said that the deregistration of Binance Markets Limited does not impact Binance’s operations since the subsidiary never provided any services and did not have any users. Laro stated:

BML was acquired by Binance Group in 2020 with the intention of launching a regulated business in the UK. However, this endeavor was not successful, and the subsidiary has remained inactive since its acquisition.

Laro clarified that Binance Markets Limited (BML) has never engaged in any form of regulated business within the UK.

While this isn’t the crypto giant’s first battle with the UK regulator, Binance’s Chief Strategy Officer, Patrick Hillmann, disclosed that the exchange is seeking regulation in the United Kingdom as a response to the regulatory difficulties encountered in the United States, during the Financial Times’ Crypto and Digital Assets Summit.

However, data from Kaiko reveals that after the termination of operating agreements with its local partner Paysafe, Binance made the decision to halt Sterling (GBP) withdrawals and deposits for its clients in the UK.

Simultaneously, Binance had also recently withdrawn its registration as a virtual asset service provider (VASP) in Cyprus as it prepares for compliance with the Markets in Crypto-Assets (MiCA) regulations. This is followed by the discontinuation of services in the Netherlands due to its inability to obtain a license to operate in the country.