The CEO of Binance - Changpeng Zhao - has announced that the cryptocurrency exchange is set to expand its services to UK residents. This news comes after regulators have ordered the exchange to seize its activities within the country in the middle of 2021.
Binance is often hailed as the biggest and most-popular cryptocurrency exchange in the current industry. Next to Coinbase and Kraken, it makes up the majority of crypto trades that happen on centralized exchanges all around the world.
Being as popular as it is, Binance is no stranger to scrutiny, however. The exchange has faced numerous challenges in the United States, where it had to open a separate branch (Bianance.US) in order to be eligible to even operate within the country.
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Within the UK, regulators have barred Binance from offering futures and options trading, as well as leveraged trading options for crypto tokens. As time went on, the regulatory strictness of the country would only increase, and Binance would be at the receiving end of the crackdown.
Part of the reason why Binance was impacted as much as it was has to do with the exchange not being able to confirm the location of its headquarters. The way that this was solved in the US was with the help of the aforementioned subsidiary company.
Mr. Zhao claims that this is also one of the solutions considered as applicable in the case of the United Kingdom, as well. Initially, the FCA revoked the exchange’s ability to offer the residents of the country the ability to participate in cryptocurrency trades. This was done due to the fact that Binance seemed to have issues with full KYC and AML compliance, as it relates to UK-specific laws and regulations.
The CEO of Binance notes that now, the company has employed an array of different compliance-savvy individuals, and thus, plans to apply for the license, once again. This would be done following the establishment of the UK subsidiary company.
It’s important to note that Binance has denied any and all market manipulation allegations. This denial is further-echoed by the fact that the exchange is often considered as one of the safest and most reliable places to trade crypto - it makes a point to follow general KYC and AML regulations, and requires all customers to identify themselves before any trading can take place.
Nonetheless, the cryptocurrency exchange platform still faces regulatory compliance issues from countries such as the US, UK, Germany, South Korea, and others. Each of these cases is unique, however, and Binance makes a point to reiterate how they are dedicated to keeping their users safe, and providing a trustworthy and reliable crypto trading platform for all.
