Key Insights
- Binance struggling to find approved UK partner needed to relaunch operations
- At least 3 potential firms have rejected requests to back Binance’s UK return
- Setbacks highlight mounting regulatory challenges facing Binance globally
LONDON (MarketsXplora) – Cryptocurrency exchange Binance has hit roadblocks attempting to relaunch in Britain after at least three firms rejected requests to back its re-entry under regulatory conditions, sources told MarketsXplora.
Binance needs to secure support from a company authorized by the UK watchdog the Financial Conduct Authority (FCA) to publicly promote crypto products in Britain’s closely monitored market.
In recent months, Binance approached over three potential partners who could have helped it regain access to British customers, but was repeatedly turned down, the sources with knowledge of the efforts said.
The largest global exchange stopped accepting its UK users in 2023 when the FCA cracked down on its then British partner, calling into question crypto promotions. The UK regulator has also privately expressed reservations over any new relationship with Binance, sources said.
The world’s biggest crypto company denied it struggled to find compliance partners in Britain, however.
“We continue to have productive conversations with potential approvers and are confident we will be able to provide a positive update soon,” Binance said.
Read also! How Binance Is Trying to Outwit EU Regulators and Break into the UK Market
Still, the rejections point to mounting global challenges facing Binance, under pressure from regulators worldwide following legal violations.
Last June, the U.S. Justice Department and Securities and Exchange Commission alleged that Binance and former CEO Changpeng Zhao let investors trade crypto without proper safeguards and disclosure.
Zhao stepped down as CEO in November to settle U.S. money laundering charges that carry possible jail time at an upcoming February sentencing.
The company also formally ditched UK regulatory approval last May, as authorities maintained scrutiny over its British operations. No Binance group company currently holds clearance to offer crypto services to Britain’s retail and institutional investors.
For any comeback, Binance needs a regulatory green light from private-sector partners, authorized by the FCA for crypto approvals.
Crypto comparison site, Finder, maintained ties to Binance despite the FCA cracking down on such promotions among authorized firms last year.