Binance, the world's largest cryptocurrency exchange, is facing significant obstacles in its attempt to re-enter the UK market. The company's efforts are hampered by potential local partners' reluctance to cooperate.
In recent months, at least three UK firms with legal permission to facilitate communications between crypto platforms and their customers have turned down Binance's requests. These companies, who did not want their names to be disclosed, expressed their concerns privately.
The UK's Financial Conduct Authority (FCA) voiced concerns to several authorized businesses about working with the cryptocurrency exchange, leading to these rejections. This underscores the huge challenge facing Binance CEO Richard Teng, who took over in November with a mandate to rebuild trust among global regulators.
Teng's appointment comes after founder Changpeng 'CZ' Zhao was forced to resign as part of a settlement with US authorities, in which Binance agreed to pay a $4.3 billion fine.
Under expanded Chapter 21 rules introduced last year, most digital asset service providers are required to collaborate with third-party companies to offer services in the country. Binance suspended access for new UK customers in October after its agreement with then-partner Rebuildingsociety.com was terminated by the FCA.
Despite these setbacks, Binance denies that its efforts have been met with resistance. “It is not accurate to say that we have been rejected by chapter 21 certifiers in the UK,” the exchange said in an email. “We continue to have fruitful discussions with potential validators and are confident that we can provide a positive update soon,” Binance added.
*This is not investment advice.