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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Feb 02, 2024 04:59 UTC
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Binance Struggles With UK Return Amid Partner Rejections; Here’s Why
Binance struggles to return to UK market. Regulatory concerns and partner hesitancy make re-entry difficult.
Former CEO's legal troubles and regulatory penalties add to challenges.
Despite denials and uncertainty, the company hopes to secure partners soon.
Binance Holdings Ltd. encounters obstacles in its attempt to re-enter the UK market, grappling with hesitancy from local partners amidst regulatory opposition. The Financial Conduct Authority (FCA) has expressed concerns to UK firms authorized for crypto communications, resulting in refusals to engage with Binance.
Here’s more you need to know about this.
Regulations Continue to Pose a Challenge
Despite CEO Richard Teng’s diligent efforts to restore global trust, Binance continues to wrestle with persistent regulatory challenges. The FCA’s reservations highlight the uphill struggle the cryptocurrency giant faces in securing partnerships, particularly following the resignation of its founder, , amid a substantial $4.3 billion penalty settlement with US authorities.
At least three UK firms, operating under Section 21 rules, have rejected Binance’s requests to approve communications with clients. The influence of the FCA on these rejections amplifies the prevailing skepticism surrounding Binance’s operations, intensifying the hurdles to its market re-entry.
Read More: Binance GitHub Leak Investigated – What You Need to Know
Post-Termination Setback
Binance had to suspend access for new UK customers in October after the FCA terminated its agreement with Rebuildingsociety.com. The reluctance of local partners further complicates Binance’s endeavor to re-establish its presence in the UK market.
Denials, Negotiations & More
Binance, however, denies claims of being rebuffed, asserting ongoing discussions with potential partners. A spokesperson for the FCA declined to comment, maintaining silence on the matter. Binance remains optimistic, stating,
“We continue to have productive conversations with potential approvers and are confident that we will be able to provide a positive update soon.”
Binance has faced global regulatory scrutiny, notably in the US, with penalties incurred for violating sanctions and anti-money laundering laws. Founder Zhao’s current legal situation adds another layer of complexity to Binance’s global operations.
Did You Know? Changpeng Zhao’s $4.5 Billion Bail Offer Rejected for UAE Travel
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