Why Binance’s return to UK might not be easy
- Binance’s re-entry into the UK hit roadblocks.
- BNB has continued to clear its roadblocks with recovery attempts.
Recent reports suggest that Binance’s efforts to resume its operations fully in the United Kingdom are encountering obstacles. The world’s largest cryptocurrency exchange faces regulatory challenges, impacting its European expansion.
Binance’s struggle with UK regulations
The issues stem from new regulations imposed by the Financial Conduct Authority (FCA) in the UK. Last year, the FCA updated its rules governing crypto promotions. It required crypto firms to either register directly with the FCA or seek approval from an authorized third party.
The third-party approver must ensure compliance with FCA rules before allowing the promotions to go public.
According to the Bloomberg report, Binance has approached at least three firms searching for a new partner to approve its marketing services.
However, all three firms declined the offer, citing concerns expressed by the FCA regarding potential collaborations with Binance. This regulatory resistance poses challenges for Binance’s operations in the UK.
Origins of Binance’s regulatory woes
AMBCrypto’s report highlights the challenges faced by Binance, which was caused by the FCA in the UK.
The trouble began when the FCA imposed restrictions on Rebuildingsociety. This was a peer-to-peer lending platform utilized by Binance for compliance with marketing regulations.
The FCA expressed concerns about the platform’s ability to endorse and supervise financial promotions.
Specifically, the regulatory body urged Rebuildingsociety to withdraw any advertisements offering approval for such financial promotion. It went further and requested written confirmation of its commitment to these requirements.
This regulatory action led to the termination of the partnership between Binance and Rebuildingsociety. Due to this, the world’s largest exchange could not continue its operations in UK.
Furthermore, the FCA’s decision might have been influenced by Binance’s regulatory challenges in the United States.
The exchange faced legal issues with charges from the Security and Exchange Commission, and the Department of Justice. The former CEO, Chanpeng Zhao, pleaded guilty to certain counts and stepped down from his position due to these challenges.
How much are 1,10,100 BNBs worth today
Impact on BNB?
An examination of Binance Coin [BNB] on a daily timeframe showed a relatively stable trend with no significant upswing or downturn. As of this writing, BNB was trading with a 0.8% increase, reaching around $303.
The chart showed a positive trend, with BNB trading above its short Moving Average (yellow line). Additionally, the Relative Strength Index (RSI) line was positioned around the neutral line, indicating a weakening bear trend.