Binance CEO Changpeng Zhao has confirmed that the crypto exchange giant is working on building its U.K. division, following an order issued in June 2021 by the Financial Conduct Authority to cease advertising. Binance Markets Limited is a London-based firm that was hoping to become a separate entity to serve the U.K. market, much like Binance US, but the FCA came in the way.
Binance CEO says their relations with the FCA have improved.
Binance CEO mentioned that the exchange’s relations with the FCA have markedly improved since the financial watchdog’s crackdown and are on talking terms. He said they had hired many compliance officers (including former FCA employees) to undergird an application for a license to the Financial Conduct Authority. One of the main issues that the U.K. regulator had with the exchange was opacity regarding its domicile and corporate structure. The crypto exchange is now putting up brick-and-mortar offices (including one in the U.K.) and setting up legal entities.
Binance increases its efforts to comply with financial regulators.
Zhao has been on a PR campaign in recent weeks, conducting interviews with Bloomberg, CNBC, and the Associated Press. Binance is examining 3-5 locations for major regional headquarters as the company looks to transition from a decentralized technology company to become a financial services company. The crypto exchange started this process approximately five to six months ago. Zhao believes that because regulatory authorities do not know how to oversee decentralized organizations, it makes more sense to play along and welcome regulation, even recently releasing a “crypto bill of rights.” Binance has faced heat from several countries’ regulators earlier this year, including South Africa, Singapore, Australia, and Brazil.
