Binance Faces Challenges in Returning to the UK as Partners Decline Collaboration; Here’s the Reason
Binance Holdings Ltd. is facing numerous obstacles as it tries to make a comeback in the UK market. The company is struggling to find local partners who are hesitant to work with them due to regulatory concerns. The Financial Conduct Authority (FCA) has expressed reservations about Binance and has advised UK firms to avoid engaging with them.
Despite the efforts of CEO Richard Teng to regain trust and address regulatory challenges, Binance continues to face difficulties. The FCA’s concerns highlight the uphill battle the company faces in securing partnerships, especially after the resignation of its founder, Changpeng Zhao. In addition, Binance recently reached a settlement of $4.3 billion with US authorities, further complicating their situation.
Several UK firms operating under Section 21 rules have rejected Binance’s requests for communication approval with clients. The influence of the FCA in these rejections only adds to the skepticism surrounding Binance’s operations and makes it even harder for them to re-enter the market.
Binance had to suspend access for new UK customers in October after the FCA terminated its agreement with Rebuildingsociety.com. The reluctance of local partners further complicates Binance’s efforts to regain a presence in the UK market.
Despite these challenges, Binance denies claims of being rejected by potential partners and insists that discussions are ongoing. The FCA declined to comment on the matter. Binance remains optimistic and states that they are having productive conversations with potential partners and expect to provide a positive update soon.
Binance has faced regulatory scrutiny worldwide, particularly in the US, where they have been penalized for violating sanctions and anti-money laundering laws. The legal situation of founder Changpeng Zhao adds another layer of complexity to Binance’s global operations.
In other news, Changpeng Zhao’s $4.5 billion bail offer has been rejected for UAE travel.
Tags: Binance, Crypto news