Binance plans to develop into registered UK agency regardless of regulatory setbacks
Changpeng Zhao, Binance CEO, said the exchange plans to expand into the UK in the next six to 18 months despite being ordered by the country’s regulator to cease trading earlier this year.
The UK’s Financial Conduct Authority (FCA) revoked Binance’s ability to trade in the UK in June amid extensive regulatory crackdown on crypto exchanges. Binance is one of the world’s largest crypto exchanges.
To become a registered crypto asset firm in the UK, the platform must adhere to money laundering and terrorist financing controls. To meet those requirements, Zhao stated that the company is considering starting a specific business in the UK – much like its subsidiary Binance.US.
Zhao told the Telegraph on Dec. 4 that Binance plans to apply for an FCA license after hiring “a number of ex-UK government officials” and “several hundred compliance staff” since the FCA notice in June .
In October, the crypto exchange giant hired the former head of international relations at the Dubai Financial Services Authority (DFSA) as chief regulatory liaison officer to help build better relationships with international regulators.
Zhao also noted that the platform is “fully regrouped,” making “a number of very significant changes” to “product offerings, our internal processes and the way we work with regulators.”
Related: Binance continues to push for a regulated crypto exchange with new employees
With the FCA’s approval, Binance could offer products such as futures and derivatives in the UK.
Binance also previously suspended derivatives trading for users in Germany, Italy and the Netherlands, as part of a broader plan to stop selling these products across Europe.
In August, the FCA released a prudential notice stating that it was “unable” to effectively oversee Binance because it failed to answer questions about its headquarters.
The exchange has denied all allegations of market manipulation but is still facing opposition from numerous jurisdictions including Germany, Malaysia and South Korea.