The U.K.’s top financial regulator has announced the cancellation of several permissions granted to Binance’s U.K. unit, according to an update on the regulator’s website. Binance Markets Limited, the U.K. arm of the cryptocurrency exchange, had obtained permissions from the Financial Conduct Authority (FCA) for activities it had not carried out or offered in the U.K. In response, Binance requested the withdrawal of these permissions, a decision that the company confirmed in a statement to CoinDesk. The spokesperson for Binance stated that since the permissions were unlikely to be needed in the future, it was prudent to cancel them in accordance with the FCA’s recommendations. The cancellation of permissions for Binance Markets Limited does not affect Binance.com, which does not operate crypto services in the U.K. and is only available to U.K. consumers on a reverse solicitation basis.
Binance has recently chosen to withdraw its registration with a Cyprus regulator, citing a strategic focus on fewer European jurisdictions due to the introduction of the EU’s new Markets in Crypto Assets (MiCA) regulation. Moreover, the company announced its departure from the Netherlands after failing to obtain regulatory approval in the country.
Additionally, Binance is facing regulatory challenges in other regions. Its U.S. unit and founder, Changpeng “CZ” Zhao, are currently involved in a lawsuit filed by the Securities and Exchange Commission (SEC) regarding the alleged sale of securities and operation of an unregistered trading platform. French authorities have also confirmed that they have been investigating the platform for “aggravated money laundering” since at least 2022. In a June 7 update, the FCA stated that following the cancellation of permissions, Binance is no longer authorized by the regulator, and no other entity within the Binance Group possesses U.K. authorization or registration for regulated business activities in the country.
In 2021, the FCA made headlines by stating that Binance was “not capable of being effectively supervised,” and prohibited its U.K. arm from conducting any regulated activities within the country. The regulator also noted that the Binance Group appeared to be offering a range of products and services to U.K. customers through the website Binance.com.