Binance, the world’s leading digital asset service provider, continues to pull out of major crypto hubs amid ongoing pressure from financial regulators. Binance Markets Limited (BML), the UK-based subsidiary of Binance, has officially terminated its registration with the Financial Conduct Authority.
The financial regulator stated that Binance and its affiliates do not possess any operational license or approval in the UK. According to the spokesperson, BML had different authorizations from the FCA for activities that it never actually did or provided in the UK.
BML decided to cancel them because it didn’t think it would need them in the future. Per the spokesperson, they did this based on advice from the FCA to keep things up to date and make smart decisions. BML requested the FCA to take away its approval. The regulator’s website states that the firm’s authorization was officially canceled on May 30.
FCA noted in an update on June 7:
“Following the completion of the cancellation of permissions, the firm is no longer authorized by the FCA. No other entity in the Binance Group holds any form of UK authorization or registration.”
Binance UK Was Never In Business
Ilir Laro, Binance’s sub-regional manager for development for the UK and Europe, said the cancellation had no operational impact on the exchange as it had never been in business. He further clarified that BML, acquired by Binance Group in 2020, has been dormant or inactive since then.
Laro stated that an earlier attempt to establish a regulated business in the UK failed. Binance’s recent departure from the UK adds to its series of deregistrations from different European markets. Last week, the company withdrew from two European countries, Cyprus and the Netherlands.
The exchange failed to obtain a Virtual Asset Service Provider (VASP) license in the Netherlands. At the same time, the company announced its departure from Cyprus to prioritize full compliance with recent EU regulations governing digital assets.
Notably, the FCA banned BML from doing business in the UK in June 2021. When the ban was imposed, specific instructions were given, such as removing financial and cryptocurrency-related ads. Furthermore, the exchange was also required to inform its clients on its social media platform and website that it has no connection with UK businesses.
In early June, the US SEC filed a lawsuit against Binance, alleging that it violated US regulations. Since then, Binance has been experiencing a steady decline.