Binance is Looking to Expand into the UK Despite Getting Banned by the FCA

Source: news.bitcoin

Shortly after the UK’s Financial Conduct Authority(FCA) banned Binance, its CEO shared expansion plans into the UK. The world’s largest crypto exchange CEO, Changpeng Zhao, shared the expansion plans are to happen within the next 6 to 18 months.

While speaking to The Sunday Telegraph, Zhao shared plans to apply for regulatory approval from the FCA. Additionally, Zhao said that since its June ban, the crypto exchange has taken some measures. It has hired compliance people and “a number of ex-regulatory staff from the United Kingdom.”

Zhao also mentioned that the exchange’s relations with the regulatory body have greatly improved. He added that Binance wants to establish its presence in the UK and do so in a “fully compliant and licensed way.”

The CEO also noted that the organization is making several changes in many areas. A number of these changes embrace “structure, changing up the product offerings, and the way Binance works with regulators.”

FCA Bans Binance in the UK

The FCA banned Binance from crypto trading in the UK in June. This ban resulted from a regulatory crackdown on crypto exchanges in Britain to deal with arising issues such as money laundering. The exchange has to abide by the terrorist financing controls and money laundering controls to become an operational crypto asset firm in the UK.

The FCA had also pointed out Binance’s opaque structure as a significant concern, such as not having a headquarter or licenses. This particular concern has been a big issue with investors who want to take legal action against the exchange. These crypto investors have claimed that they lost their money during a major outage. However, they cannot take Binance to court since it has no official headquarters.

Consequentially, the crypto exchange will have to set up a specific UK company. This company will be similar to Binance’s US subsidiary. Additionally, the company hired the former head of international relations at the DFSA. The former Dubai Financial Services Authority official’s role is to facilitate better relations with regulatory bodies internationally.

If Binance gets the go-ahead from FCA, UK citizens could soon begin enjoying products such as derivatives and futures.

More on Binance

Binance’s journey toward becoming the world’s top exchange began in 2017 after Changpeng Zhao, also known as CZ, started it. The Binance exchange has grown into a prominent trading ecosystem comprising multiple exchanges. These exchanges include the Token launchpad and the Trust Wallet.

Apart from the UK, the exchange is also facing legal battles in the USA, Singapore, South Africa, Japan, Italy, Thailand, Cayman Islands, Malaysia, and Canada. The legal warnings from these countries worldwide have prompted Binance to take more proactive regulatory measures.

Additionally, Binance has ceased derivatives trading in the Netherlands, Italy and Germany. This is part of the exchange’s plan to stop offering these products in Europe. Moreover, in September, Australian traders were given a 90-day notice to close their positions for leveraged tokens, futures and options.