Binance Subsidiary Withdraws Application to Operate with UK FCA, Revoking Registration

Binance Subsidiary Withdraws Application to Operate with UK FCA, Revoking Registration

At the end of May, a subsidiary of Binance made a formal request to cancel its application to operate under the UK Financial Conduct Authority (FCA). However, this withdrawal will have no impact since the subsidiary had not yet commenced its services and had no users.

Initially, there were expectations that the subsidiary, Binance Markets Limited (BML), would become a licensed business in the UK. However, according to Finance Magnates, the registration of BML with the UK FCA has been officially revoked at the company’s own request.

As it stands, no Binance entity currently holds an operating license in the UK. The FCA provided an update stating that Binance Markets Limited had recently submitted a cancellation request for their FCA permissions, which was processed and completed on May 30, 2023. Consequently, the firm is no longer authorized by the FCA, and no other entity within the Binance Group possesses UK authorization or registration for regulated business operations.

Ilir Laro, Binance’s regional head of growth for the UK and Europe, clarified that the deregistration of BML will have no impact on the company’s operations since it had not engaged in any business activities. While there were initial plans for BML to obtain a license in the UK, those plans did not come to fruition.

The world’s largest cryptocurrency exchange, Binance, is currently facing regulatory pressures, including ongoing lawsuits from the US Securities and Exchange Commission (SEC). Additionally, its French branch is under investigation for alleged involvement in providing illegal cryptocurrency services and potential money laundering activities.

However, CEO Changpeng Zhao (CZ) swiftly denied any fear, uncertainty, and doubt (FUD) surrounding these developments, describing the investigations as surprise visits by local authorities. CZ reassured that Binance France remains the company’s leading hub in Europe.

Recently, Binance announced its decision to exit the Netherlands after failing to secure a license to offer virtual asset services. The exchange has also applied to cancel its license in Cyprus, expressing a desire to concentrate its efforts on a smaller number of regulated entities within the European Union (EU).