Binance Seeks UK Regulation Amidst US Crypto Crackdown

Binance, the world's largest cryptocurrency exchange

Pursue Regulation in UK Amid US Cryptocurrency Crackdown

Binance, the world's largest cryptocurrency exchange by trading volume, has acknowledged the challenges it faces in the United States due to a crackdown on cryptocurrencies. The company's Chief Strategy Officer, Patrick Hillmann, recently spoke at the Financial Times' Crypto and Digital Assets Summit, stating that the past six months have been "quite confusing" for the US crypto industry. He pointed to recent actions taken by the Securities and Exchange Commission (SEC) against rival exchange Coinbase for allegedly violating securities laws as evidence of the "strange place" the US is in.

Binance, the crypto exchange, plans to seek regulation in the UK despite its struggles in the US. Patrick Hillmann, the company's chief strategy officer, acknowledged the difficulty of conducting business in the US due to the recent crackdown on cryptocurrencies. However, Binance remains committed to becoming regulated in the UK. This is a notable shift from the company's previous statements regarding the challenges of operating in the US. In 2021, Binance was ordered by the Financial Conduct Authority to halt all regulated activities in Britain due to its failure to provide crucial information about its business activities.

Binance complies with UK regulations on money laundering and terrorism financing, using a compliance program with anti-money laundering and global sanctions principles. The program detects and addresses suspicious activity, securing approvals and registrations in other countries like New Zealand, Dubai, France, Italy, and Spain.

Binance has been under scrutiny by US regulators for perceived illicit activity this year. In March, the Commodity Futures Trading Commission (CFTC) brought a lawsuit against the exchange, alleging that it had been operating illegally in the country and had broken the law by extensively soliciting US customers. Binance expressed surprise and disappointment in response to the CFTC complaint. The company's move to seek regulation in the UK is a strategic response to the challenges it faces in the US and demonstrates its commitment to responsible and compliant operations in the global cryptocurrency market.