Regulatory Scrutiny Forces Binance to Cancel UK Registration, Takes Different Path – Coinpedia Fintech NewsJune 19, 2023
Binance has continued to face regulatory pressures leading to a strategic pivot away from established markets. A case in point is the UK, where Binance’s subsidiary, Binance Markets Limited (BML), recently called off its registration with the local financial watchdog, the Financial Conduct Authority (FCA).
The Regulatory Rollback
Post this withdrawal, the FCA has said that no Binance group company holds authorization to offer financial services in the UK. This comes after BML’s deregistration from the regulatory body, marking a significant shift in the exchange’s presence and operations in the region.
Previously authorized by the FCA, BML has a history in the UK financial market. Nevertheless, with this change, the company has lost its authorized status to provide regulated services and products. This transition affects how the FCA handles any claims or complaints concerning the company, with BML no longer being covered by the FCA’s usual oversight.
How Does This Affect Customers?
This change in status might affect customer protection. Activities carried out by regulated entities usually fall under several protective measures, some of which are maintained by bodies other than the FCA.
However, these protective layers could change as BML is no longer an FCA-authorized firm. As such, remaining protections may differ based on the duration since the customer’s last interaction with BML and the specific regulated activities BML was partaking in.
How It’s Going in the US?
Meanwhile, across the Atlantic, Binance experienced a pivotal development in its ongoing dance with regulatory authorities. A U.S. district court judge, Amy Berman Jackson, gave her nod of approval to an agreement on June 17 involving Binance, its U.S. branch – Binance.US, and the U.S. Securities and Exchange Commission (SEC). This agreement led to the dismissal of a previously instated temporary restraining order (TRO) that could have immobilized all Binance.US assets.
This negotiated settlement between the digital currency exchange and the American regulator ensures that global Binance executives are restricted from accessing the private keys of digital wallets, hardware wallets, or obtaining root access to Binance.US’s tools on Amazon Web Services.
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