Cryptocurrency exchange Binance plans to create an arm in the UK
Binance, the world’s largest cryptocurrency exchange by trading volume, faced serious dissatisfaction from global regulators in 2021. It all started in August 2021, when the Financial Conduct Authority (FCA) issued a ban on Binance’s activities in the country. The FCA issued a supervisory notice stating that it was “unable” to effectively control Binance because it had not received an answer to the question about the location of the company’s headquarters.
Binance CEO Changpeng Zhao said that the exchange is now working to restore its business and reputation in the UK. In this connection, it plans to expand its activities in the country over the next 6-18 months. The head added that Binance will seek to obtain the registration of the cryptocurrency company in the UK.
To obtain this registration, the company must comply with anti-money laundering and terrorist financing regulations. The head of the company stated that the organisation is considering creating a UK arm, just like Binance.US.
As reported by coingape.com, Zhao said that Binance has hired a couple hundred employees to solve legal and regulatory issues in the UK. The head of Binance added: “We’re fully re-engaged there. We’re making a number of very substantial changes in organizational structures, product offerings, our internal processes, and the way we work with regulators. We want to continue to establish a presence in the UK and serve UK users in a fully licensed and fully compliant manner”.
What was the exchange guilty of?
After the Chinese ban in 2017, Binance moved its headquarters to several locations around the world. One of the biggest problems Binance faced was that it didn’t have a global headquarter.
Zhao explained the position of regulators: “When [regulators] asked us a very simple question: ‘Where’s your headquarters?’ and our response was that we have no headquarters, that we’re a decentralised organisation, they didn’t know how to work with us. We understand that now. So now we’re in the process of setting up real offices, legal entities, a proper board, proper governance structures in most places, including the UK.”
Binance has withdrawn its permit license application from Singapore, the company’s former hub. It seems that the company is focused on moving to other countries.
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