Bloomberg: Binance’s plan to return to UK market encounters regulatory resistance

Author: Emily Nicolle, Bloomberg; Compiler: Deng Tong, Golden Finance

• UK regulators express concerns about Binance;

• New CEO Teng is trying to rebuild the credibility of regulators.

Binance Holdings Ltd.’s efforts to re-enter the UK market have been thwarted by potential local partners’ reluctance to work with it amid regulatory opposition.

At least three British companies that have obtained regulatory licenses in recent months to approve communications between cryptocurrency platforms and their customers have rejected Binance’s request, people familiar with the matter said, requesting anonymity to discuss private discussions. Deliberation.

The U.K.’s Financial Conduct Authority expressed concerns about several authorized businesses that inquired about working with Binance and were subsequently rejected, two people familiar with the matter said.

The FCA’s stance illustrates the difficult task facing Binance CEO Richard Teng, who was charged with rebuilding trust among regulators around the world when he took over in November. Teng was elevated to the top job after founder Changpeng Zhao "CZ" was forced to resign as part of a deal with U.S. authorities in which Binance agreed to pay a $4.3 billion fine.

Under the expanded Rule 21 passed last year, most digital asset service providers are required to partner with such third-party companies to provide services in the country. Binance suspended access to new UK customers in October after the FCA terminated its agreement with then-partner Rebuildingsociety.com.

Binance denies there is opposition to its attempt. "It is inaccurate to say that we have been rejected by UK Article 21 approvers," the cryptocurrency exchange said in an emailed statement.

Binance said: "We will continue to work with potential Approvers are engaged in a productive dialogue and believe we will be able to provide a positive update soon." An FCA spokesman declined to comment.

Binance’s U.S. deal follows a years-long investigation in which the company admitted to violating sanctions and anti-money laundering laws, including by allowing groups such as Hamas to trade on its platform. Zhao Changpeng is currently living in the United States, awaiting sentencing, and his previous application to return to his home in Dubai was rejected.

The FCA has previously warned consumers not to use Binance’s services, adding that the company was “not” effectively regulated due to its unclear global structure.