Binance, the world’s largest crypto exchange by trading volumes has seen a major snub by global regulators in 2021. It all started with U.K’s Financial Conduct Authority (FCA) issuing the first ban on Binance operations in the country.
In an interview with The Telegraph, Binance CEO Changeoeng Zhao said that the exchange is now working to build back its U.K business. The executive further added that Binance will now aspire to become a registered crypto firm in the U.K over the new six to eighteen months.
Earlier in June 2021, the Financial Conduct Authority announced its crackdown on Binance asking it to make it clear on the website that the company doesn’t hold any official permission to operate in the U.K. Speaking to the publication, Zhao said that it has hired a couple of hundred employees to look after legal and compliance matters in the country. The Binance executive added:
“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”.
Binance Facing Questions from Global Regulators
Following the first crackdown by China in 2017, Binance has shifted its base to multiple locations worldwide. One of the biggest challenges that Binance was facing is that it didn’t have a global headquarter.
Speaking to the publication, Zhao added:
“When [regulators] asked us a very simple question: ‘Where’s your headquarters?’ and our response was that we have no headquarters, that we’re a decentralised organisation, they didn’t know how to work with us. 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.”
Last week, Binance said that it has withdrawn its permit license application from Singapore, the company’s former hub. It looks like the company is focused on moving its operations to other territories.