Binance Encounters Obstacles in Reestablishing UK Footprint Amid Regulatory Hurdles

Crypto News– Binance, the world’s leading cryptocurrency exchange, is encountering hurdles in its efforts to regain a foothold in the UK market after its departure last year. As per a recent Bloomberg report citing individuals familiar with the situation, the company has been unable to establish a licensed partner in the UK, hindering its access to the market. Last year, Binance withdrew its application for registration with UK authorities as a digital asset service provider in June.

Binance Encounters Obstacles in Reestablishing UK Footprint Amid Regulatory Hurdles

In October, Binance announced it would cease accepting new users from the UK after the country’s financial regulators implemented new regulations prohibiting foreign companies from advertising digital assets, products, and services without authorization.

The UK Financial Conduct Authority (FCA) stipulated that crypto firms like Binance couldn’t promote their products to consumers in the region without approval from an authorized entity. Binance’s then-partner, Rebuildingsociety.com (REBS), was barred from operating in the region, prompting the exchange’s exit.

Now, Binance aims to re-enter the market to bolster its global presence. However, according to Bloomberg sources, the company is struggling to secure new partners with FCA approval.

Binance Denies Allegations of Encountering Difficulties

Binance, however, has rebutted claims suggesting difficulties in securing a new partner. In a statement provided to Bloomberg, the exchange emphasized that it is inaccurate to suggest that they have faced rejection by section 21 approvers in the UK.

“It is not accurate to say that we have been rebuffed by section 21 approvers in the UK. We continue to engage in productive discussions with potential approvers and remain confident that we will have positive developments to share soon,” stated a spokesperson for the company to Bloomberg.

While Binance strives to re-enter the UK market, it is simultaneously grappling with regulatory hurdles in the United States.

Last year, the exchange reached a $4.3 billion settlement with federal regulators in the country, including the Commodities Futures Trading Commission (CFTC) and the Department of Justice (DOJ).