Binance has been forced into defense mode following a US Securities and Exchange Commission (SEC) lawsuit. Binance recently decided to cancel its registration in the UK due to strict scrutiny from regulators. A week ago he lost his license in the Netherlands and in France he received a lawsuit… he still has licenses remaining in several European countries but could this be a new trend?
It seems the SEC lawsuit has opened Pandora’s box and several regulators have decided to censure Binance for its practices. Since FTX went down, Changpeng Zhao, founder and CEO of Binance, decided that they would cooperate clearly with regulators around the world. However, it seems that regulators have found loopholes in Binance’s operations under their jurisdiction and now Binance is forced to defend itself.
Binance has decided to cancel its registration with the Financial Conduct Authority (FCA), a regulatory body in the UK. Binance Markets Limited (BML), a UK-based subsidiary of Binance, has officially canceled its registration with the FCA. After this decision the FCA commented that Binance is no longer authorized to provide services in the UK.
“Upon completion of the license cancellation, the company (Binance) is no longer authorized by the FCA.”
Binance downplays UK deregistration
Ilir Laro, Binance’s sub-regional director for UK and European growth, thinks so BML has never carried out “any type of regulated business” in the UKadd:
“BML was successfully acquired in 2020 by Binance Group, with the aim of launching a regulated business in the UK. However, these efforts were unsuccessful and have remained inactive since being acquired.”
Lara he emphasized as Binance already has 5 fully regulated entities (France, Italy, Poland, Sweden and Spain) in its efforts to “consolidate itself to reach all of Europe.”
Europe is starting to attack Binance
In the last week Binance took several hits in Europe. Regulators in the Netherlands did not grant a VASP license to Binance, so it immediately closed its services in the country.
On the same day, the French financial justice investigation service opened a file against him for allegedly failing to comply with his obligations regarding KYC (Know Your Customer, in Spanish) procedures.
For now in Italy, Poland, Sweden or Spain there are no initiatives opposing this policy, so the European regulatory umbrella remains intact.
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