Binance CEO CZ wants to set the exchange back to the UK.
Binance, the largest cryptocurrency exchange by trading volume, is working to rebuild its operations in the UK after it was told by the Financial Conduct Authority, FCA, in June to shut down its activities there. This information comes from the CEO of the company, Changpeng Zhao, CZ.
CZ told that outlet that the company is trying to become a registered crypto-asset firm, it is a process that will take 6 to 18 months.
CZ said that, on June 28 of this year, the UK Financial Conduct Authority issued a warning to Binance Markets Limited, Binance’s British subsidiary, and Binance Group, imposing restrictions on Binance’s activities in the UK without the prior consent of the FCA.
Later in August, the FCA highlighted that Binance Markets Limited met all the requirements, although the company was not yet able to conduct regulated business in the country, because it was “not capable” of being supervised.
Regulatory measures against Binance have been implemented in various countries, including the United States of America, Japan, Italy, Australia, South Africa, and Singapore. However, Binance has been taking steps to comply with its product offerings and practices, including reducing high leverage, imposing mandatory KYC standards, and strengthening its compliance team with expert hires.
According to the media, it seemed that Binance would use Singapore as its first base of operations, but relations have soured between the company and the Monetary Authority of Singapore.
A New Branch in Ireland
According to the news, Ireland will be Binance’s new home. The exchange, famous for its decentralization, has registered this new company in Ireland: Binance Exchange. The media believes that Binance Exchange, the new entity, gets poised to serve as the corporate mothership and not as a technology licensing portfolio company or regional subsidiary.
Binance has an interest in opening regional offices in Europe. The first physical headquarters is a reality in Ireland. For its part, the proposal of a physical office in France would be possible given that it has received an affirmative response from the authorities if the platform complies with anti-money laundering (AML) regulations.
This situation took place after Binance CEO Changpeng Zhao, CZ, revealed that the exchange wants to establish regional hubs globally to achieve good terms with regulators. One of these centers is in France. This decision comes after the exchange came under scrutiny worldwide for alleged weak anti-money laundering laws.
According to Binance, its decentralized management structure has been the key point of contention with regulators. Therefore, the establishment of offices is the first step to be considered a company with all the laws.
Overall, Binance acknowledges regulatory hurdles, and CZ states that its goal is to be okay with regulators. Consequently, the exchange has focused on hiring high-profile compliance specialists.
By: Jenson Nuñez
