Binance is encountering hurdles as it tries to regain its footing in the U.K. market, facing reluctance from potential local partners due to concerns raised by regulatory authorities.
Unnamed sources familiar with the situation informed Bloomberg that three U.K.-based firms licensed to facilitate interactions between cryptocurrency platforms and users have turned down approaches from Binance in recent months. Under U.K. law, Binance requires the support of a company approved by the Financial Conduct Authority (FCA) to manage financial promotions, ensuring compliance with the FCA's stringent regulations on public communications.
Despite these challenges, Binance remains optimistic about finding a suitable partner that meets regulatory requirements. The company denied the notion that partnering with FCA-sanctioned firms has been difficult. Speaking to Bloomberg, Binance stated that it is actively in talks with potential partners and expects to announce positive developments soon.
Previously, the crypto giant withdrew its application for FCA registration via its subsidiary, Binance Markets Limited, in May 2023. This decision followed the choice not to seek regulatory clearance for certain services initially not intended for the U.K., resulting in no Binance-affiliated entity having FCA authorization to operate in the country.
Binance's efforts in the U.K. face additional complications due to legal troubles in the U.S., where the Securities and Exchange Commission (SEC) filed a lawsuit against both Binance and its CEO, Changpeng Zhao, in June 2023. Both parties have admitted wrongdoing, leading to one of the industry's largest settlements, amounting to over $4 billion. Meanwhile, Zhao is awaiting trial.