Binance, the world’s leading cryptocurrency exchange, is encountering substantial hurdles as it endeavors to re-establish a foothold in the UK market. The company’s efforts are being impeded by a noticeable reluctance from potential local partners to engage in collaboration.
Over the past few months, at least three UK firms holding legal authorization to facilitate communications between cryptocurrency platforms and their user base have reportedly rejected Binance’s solicitations. While these firms preferred not to disclose their identities, they privately expressed reservations and concerns. The Financial Conduct Authority (FCA) in the UK has reportedly communicated apprehensions to several authorized businesses about forging partnerships with Binance, contributing to these firms’ decisions to decline collaboration. This underscores the significant challenge facing Binance’s CEO, Richard Teng, who assumed leadership responsibilities in November with a mandate to rebuild trust among global regulators.
According to the expanded Chapter 21 rules introduced last year, most digital asset service providers are mandated to collaborate with third-party companies to offer their services within the country. Binance had suspended access for new UK customers back in October after the FCA terminated its agreement with then-partner Rebuildingsociety.com.
Despite these setbacks, Binance denies that it has encountered resistance in its efforts. In an email response, the exchange stated, “It is not accurate to say that we have been rejected by chapter 21 certifiers in the UK.” Binance further added, “We continue to have fruitful discussions with potential validators and are confident that we can provide a positive update soon.”
