Binance, the cryptocurrency exchange, plans to file an application with the FCA for registration to become a fully “regulated firm” within 6–18 months. In an interview with The Telegraph, its CEO Changpeng Zhao said.
He did not rule out establishing a separate subsidiary, as with Binance.US in the United States.
In June, the UK financial regulator banned Binance Markets Limited from any regulated activity in the country without prior written approval. The exchange said that the entity did not provide services on the binance.com domain.
To obtain the licence, the platform will need to meet anti-money laundering and counter-terrorism financing rules. A number of former FCA staff and several hundred compliance specialists could help. Binance opened an office in the United Kingdom to support their work.
According to Zhao, Binance has fully resumed dialogue with the authorities. The platform is implementing a series of material changes to products, internal procedures, and regulatory engagement, he added.
If approved by the FCA, Binance would be able to legally offer futures and other derivatives.
Throughout 2021 regulators in a number of countries, including Netherlands, Italy, United Kingdom, Poland, Japan, Thailand, Hong Kong, Singapore and South Africa, published warnings about Binance’s activities or took measures against the exchange.
The company acknowledged that one reason for regulatory problems was the decentralised business model, and decided to abandon it.
In November, Binance published a document for discussion outlining the fundamentals of cryptocurrency regulation, emphasising that regulation is inevitable.
Earlier Zhao said that a Binance headquarters could be opened in France. Later he added that the UAE and Singapore were among the potential jurisdictions.
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