Crypto Exchange Binance Cancels Registration In The UK
When things are difficult to handle, you may face more challenging situations. It is as if you have to deal with unfavorable circumstances all at once. You find a way to take a breath and see more obstacles are on your way.
The leading crypto exchange Binance takes some hard decisions recently. Binance’s UK-based subsidiary Binance Markets Limited (BML) canceled registration with the Financial Conduct Authority (FCA). Now it cannot offer any services in the country since it is not authorized by the FCA anymore.
According to Binance, Binance Group acquired Binance Markets Limited (BML) in 2020. The intention behind acquiring BML was to run a regulated business in the United Kingdom, but it was not successful. Now BML canceled its registration and it may not have an operational impact on the crypto exchange Binance.
Recently Binance has made the decision to exit the Netherlands. Binance did not intend to leave the Dutch market but could not get a VASP license. No new accounts can be opened in the exchange. Existing customers cannot trade or deposit, they can only withdraw funds from the exchange.
Will regulatory crackdown on crypto slow down or become harder? I think Binance focuses on what is more important for them. Since Binance Markets Limited (BML) was not successful, they might think it is better to cancel the registration and focus on something else.
The U.S. Securities and Exchange Commission filed a lawsuit against Binance and Binance has to deal with that in court. Regulatory crackdown makes it harder to operate crypto businesses even though crypto companies intend to follow regulations. The lack of regulatory clarity is a big issue that remains crypto businesses in the dark.
People get used to having bad news in crypto since crypto winter has no shortage of negative news. Hope regulators will realize that they can only drive the crypto business away from the country or make the process of adoption of crypto slower. People will adopt crypto in other parts of the world and no one can stop it.
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Reference: 1.
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The centralized exchanges are getting hit quite hard due to the regulations and I expect that to continue. Binance seems to be suffering the most from it and I have seen it move out of quite a few countries already.
Until regulators make crypto-friendly regulations or at least provide regulatory clarity, crypto exchanges will move to other countries where they get a good environment.