tiprankstipranks
Binance Seeks U.K. Regulation as U.S. Intensifies Crypto Crackdown
Market News

Binance Seeks U.K. Regulation as U.S. Intensifies Crypto Crackdown

Story Highlights

Binance is seeking regulation in the U.K. amid a crackdown on crypto companies in the U.S.

Crypto exchange Binance, like several of its peers, has been frequently expressing its disappointment over the intense crackdown on crypto firms by U.S. regulators and the lack of regulatory clarity. At the Financial Times’ crypto and digital assets summit, Binance’s chief strategy officer Patrick Hillmann said that it is now “very difficult” to operate in the U.S. and that the company would do “everything we possibly can” to be regulated in the U.K.

Commenting on the U.S. Securities and Exchange Commission’s (SEC) actions against crypto exchange Coinbase Global (NASDAQ:COIN), Hillman reportedly said that “the U.S. right now is in this weird place.” The SEC sent a Wells Notice to Coinbase in March over alleged violation of securities laws.

In March, the Commodity Futures Trading Commission (CFTC) filed a civil enforcement action against Binance and its co-founder Changpeng Zhao, alleging willful evasion of federal laws and illegal operation of a digital asset derivatives exchange. Last month, Binance.US, the American arm of Binance, withdrew its offer to buy assets of bankrupt crypto lender Voyager Digital, citing a “hostile and uncertain regulatory climate.”

It is interesting to note that in 2021, the Financial Conduct Authority (FCA) ordered Binance to cease all regulated activities in Britain. Last year, Binance’s co-founder He Yi said that the U.K. was the “most stressful” country when it comes to crypto regulation. Hillmann reportedly declined to comment on whether the company had reapplied for FCA’s registration.

Overall, Hillmann anticipates issues related to regulatory uncertainty to be addressed in the times ahead and expects the U.S. “to pivot and play catch-up to Europe,” which recently passed Mica (Markets in Crypto Assets) regulation.

Despite regulatory pressures Binance’s digital currency, Binance Coin (BNB-USD), has risen over 30% since the start of the year.

Disclosure

Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App