In a significant development, Binance, a famous global digital asset service provider, has decided to withdraw the registration of its subsidiary, Binance Markets Limited (BML), with the Financial Conduct Authority (FCA) in the United Kingdom. This move comes at a time when there is an ongoing legal dispute between Binance and the Securities and Exchange Commission of the United States. BML, Binance’s UK-based subsidiary has already received registration and clearance from the FCA to conduct business there. However, Binance has decided to cancel BML’s registration due to decent events and an ongoing legal dispute with the SEC. Binance withdraws UK registration mainly due to the existing regulatory challenges.

BML’s Approval Cancelled by UK Financial Authority

BML has officially requested the cancellation of its approval from the Financial Conduct Authority in the UK. This cancellation process has been completed approximately 3 weeks ago, and the FCA has confirmed that BML is no longer permitted to conduct business under its authority. This indicates that no member of the Binance Group presently holds a UK business registration. It is important to remember that the FCA has already issued a ban on BML in June 2021, preventing the organization from conducting any business operating in the UK. The restriction came with specific instructions for BML to stop running any cryptocurrency-related financial promotions or marketing in the region.

In addition to the ban enforced by the FCA in the UK, Binance has faced further difficulties from regulatory bodies in other countries as well. Canada, Japan, and Thailand have all taken action against Binance. A very famous British investment banking giant, HSBC Holdings plc, also joined in by forbidding its UK clients to send any payments to Binance. HBSC defended its choice by emphasizing its commitment to protecting investors.

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Ilir Laro, Binance’s regional Manager for growth in the United Kingdom, explains that the respective cancellation of BML’s registration with FCA has no impact on the firm because they are never doing any active business in the UK right now. Laro explains that BMl has been inactive ever since Binance Group bought it in 2020. He continues by saying that while there has been an initial attempt to open a regulated company in the UK, this effort has ultimately failed.

Coinbase Faces Enforcement Action for Unregulated Activities

Additionally, U.S. cryptocurrency exchange, Coinbase has also faced enforcement action for acting as an unregulated national securities and exchange agent, which has made the company rethink its options in other areas. Binance Withdraws UK Registration