BREAKING! Binance Officially Exits UK!

The UK Financial Conduct Authority (FCA) has granted approval for Binance, the world's largest cryptocurrency exchange, to deregister its subsidiary Binance Markets Limited (BML). BML had not yet commenced its operations and did not have any users as a result of increased regulatory scrutiny.

Binance, facing ongoing regulatory challenges and uncertainty, has decided to withdraw from the markets in the Netherlands and Cyprus. This move comes as part of the exchange's efforts to navigate the evolving regulatory landscape and ensure compliance with the applicable laws and regulations.

Binance Withdraws UK Registration With the FCA

On May 30, Binance successfully completed the deregistration process of Binance Markets Limited, according to the UK Financial Conduct Authority (FCA). As a result, no other entity within the Binance Group possesses any authorization from the FCA to offer regulated services in the UK.

After the cancellation of permissions was finalized, the FCA confirmed that Binance is no longer authorized to operate under its oversight. Additionally, no other Binance Group entity holds any form of UK authorization or registration for conducting regulated business in the country.

Ilir Laro, the sub-regional manager for growth in the UK and Europe at Binance, clarified that the deregistration of Binance Markets Limited (BML) has no impact on Binance's operations since BML never offered any services and had no users.

Laro explained, “BML was acquired by Binance Group in 2020 with the intention of establishing a regulated business in the UK. However, this endeavor was unsuccessful, and BML has remained inactive since the acquisition.”

Previously, Binance Markets Limited held authorization from the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA). Consequently, the FCA issued a warning against Binance Markets Limited, highlighting that the firm provided regulated services without obtaining prior written consent from the FCA.

Since its launch of crypto services in 2020, Binance has faced ongoing regulatory challenges in the UK.

After its local partner Paysafe terminated operating agreements, Binance stopped offering Sterling withdrawals and deposits for its UK clients in March.

Prior to losing its banking partner, Binance held the majority of the Sterling-denominated crypto volume, as indicated by data from Kaiko.

Troubles Faced By the Crypto Exchange

Binance is currently dealing with legal challenges in the United States, with lawsuits filed by both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Additionally, experts suggest that the Department of Justice may soon initiate legal action against the cryptocurrency exchange.

In preparation for MiCA (Market in Crypto-Assets) regulations, Binance has voluntarily withdrawn its registration as a virtual asset service provider (VASP) in Cyprus. Furthermore, the exchange has ceased offering services in the Netherlands due to its failure to obtain a license.