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Highlights
- Binance aims to become a registered crypto company in the UK and would apply for Financial Conduct Authority (FCA) licence.
- Binance is looking to make changes to its organisational structures and product offerings to make its re-entry smooth and easy.
Binance has the UK market back on its radar. After being banned from operations in the country by the UK Financial Conduct Authority, Binance has been seeking ways to enter into the market for a while now. But ever since Binance has got several compliance officers onboard, the world’s leading exchange seems to be in a better position to make its way back.
Comparing the situation when they were banned in June earlier this year, Binance’s CEO, Changpeng Zhao said, the exchange is in a better position now, with fruitful interactions from the regulators and they have also managed to gain the trust of the watchdog. He also said that Binance had never given up on its UK ambitions and always wanted to expand its presence in the region.
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Binance’s re-entry into the UK markets should revive investors’ hopes as many felt aggrieved due to the lack of options. There could be a flurry of UK investors lining up to make their investments on the exchange whenever that happens.
Binance keen to get its UK house in order
Zao said that Binance is under the process of making substantial changes in the product offerings besides their organisational structures to ensure they get back in the good books of the regulators. They also intend to become a registered crypto-asset firm.
In order to do this, the exchange would have to ensure that they abide by the money laundering and terrorist financing controls. Zao also revealed that they are considering setting up a separate company, which would be similar in its operations to the US. At the moment,
Binance’s dealings are registered in the Cayman Islands, which the regulators felt often fails to comply with norms due to its opaque corporate structure.
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The fact that Binance has not given up on its UK plans showcases the country’s potential as a leading crypto market. In fact, the Chainalysis report had found that the UK is the leader of the pack when it comes to crypto adoption in Europe. So, capturing the market would not only expand its horizon, but Binance would also see the business proposition propel.
Will the previous tryst with the regulator come back to haunt Binance?
Binance has had its tryst with regulators in the past. It was not just in the UK that Binance had to shut its shop. It had to close its operations in countries such as the Canadian province of Ontario and Japan. The Japanese Financial Services Agency had even issued two warnings to the leading exchange to get their registrations proper.
It would dearly hope that with the latest modifications to organisational structure and operations, it would be able to get the license and stage a comeback to the UK market. If it makes a comeback, If it does manage to get a license back, it could also send signals to other markets to re-consider Binance's entry into their region.
Conclusion
The coming period would be critical for the Binance and the UK market. Earlier, when the market saw crash in May-June, ban on Binance's was a critical factor. A nod from the regulators would be a huge boost to the world's leading exchange and it would send positive signals to the market as well.
