Binance wants to become registered service provider in UK

Binance wants to become registered service provider in UK

The founder and CEO of the Chinese currency, Changpeng Zhao, recently revealed that the exchange hopes to become a registered service provider in the UK in six to 18 months.

The exchange plans to build its business in the country six months after the Financial Conduct Authority FCA warned that Binance is operating in the UK without permission.

In June of this year, Binance was told by the UK regulators to remove advertising and make it clear on its website that the exchange isn't allowed to offer its products and services in the country.

Since then, Binance has onboarded a number of ex-regulatory staff from the UK and a couple of hundred compliance people, said Zhao, revealing the extent to which the exchange has bolstered its UK office.

As a result of the exchange's plans for operating in the UK, a number of very substantial changes are being made in organizational structures, product offerings, internal processes, and the way we work with regulators, he said.

The company said that they wanted to continue to establish a presence in the UK and serve UK users in a fully licensed and fully compliant manner.

The FCA approval would allow the exchange to offer products such as futures and derivatives in the UK.

In August, the financial watchdog reiterated its position, arguing that Binance is not capable of being effectively supervised. This in mind, Zhao s company could create a separate entity called Binance UK, similar to the existing one in the US, and address the FCA's concerns about Binance not having a designated headquarters.

The notice of the FCA was one of the first warnings that Binance received from regulatory bodies around the world, which caused Zhao to take a more proactive approach to the company's compliance strategy.