According to Telegraph, the CEO and founder of Binance, Changpeng Zhao, revealed that the crypto exchange platform seeks to become an accredited service provider in the UK in six to eighteen months.
This decision was made after the Financial Conduct Authority (FCA) warned Binance for operating in the country without any permission.
Meeting the anti-money laundering standards of the UK
In June, the UK regulator ordered Binance to stop any advertisement and indicate on its website that the exchange can’t operate in the country.
Binance has since then onboarded some ex-regulatory staff from the country and several compliance people, according to Zhao. The CEO said:
“We’re fully re-engaged there. We’re making a number of very substantial changes in organizational structures, product offerings, our internal processes, and the way we work with regulators. We want to continue to establish a presence in the UK and serve UK users in a fully licensed and fully compliant manner.”
Once the FCA approves Binance’s operation, the crypto exchange can offer products like derivatives and futures in the UK.
Where’s Your Headquarters?
FCA reiterated its stance in August, stressing that Binance cannot be supervised effectively. Zhao said:
“We understand that now. So now we’re in the process of setting up real offices, legal entities, a proper board, proper governance structures in most places, including the UK.”
Binance could choose to establish a different organization called Binance UK. This decision will address the concerns of the FCA as regards Binance not having a designated headquarters in the country.
The notice from the FCA was one of the warnings Binance received from many regulatory bodies across the globe. This made Zhao take a more dynamic approach towards Binance’s compliance strategy.
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Wilson is a successful crypto analyst and content writer with many years of writing experience in finance and blockchain fields. His interests are in crypto-asset research and technical analysis, Fintech, Blockchain, DeFi, NFTs, and Personal Finance.