Binance UK Chief Resigns Amid Regulatory Pressure
Binance’s UK chief, Jonathan Farnell, has resigned from the company, joining a list of executives leaving the crypto exchange. His departure comes after Binance suspended new customer registrations in the UK due to regulatory crackdowns by the Financial Conduct Authority (FCA). Stéphanie Cabossioras also recently stepped down as managing director of Binance’s French unit.
Farnell played a significant role in Binance’s efforts to establish itself as a regulated entity in the UK. He previously spearheaded compliance at eToro and co-founded FCA-regulated Arro Money, which was later acquired by eToro. In March 2022, Farnell became the chief of Bifinity, a fiat-to-crypto payments entity owned by Binance.
Binance’s Challenges in the UK
The FCA has implemented strict regulations for crypto businesses, adding 145 unauthorized firms to its list. New rules on crypto promotions went into effect on October 8, requiring all firms to comply with the financial promotion regime. Earlier this month, the regulator blocked Binance’s promotional partner, Rebuildingsociety.com, from approving crypto promotions in the region.
In response to regulatory hurdles, Binance temporarily halted new user registrations in the UK while searching for an FCA-authorized partner. The face-off between the FCA and Binance began in June 2021 when the regulator banned the exchange from conducting regulated activities. The FCA expressed concerns over Binance’s tie-up with UK crypto firm Eqonex through its subsidiary Bifinity.
Hot Take: Binance Faces Mounting Regulatory Pressure
Binance continues to face challenges as regulatory pressure increases globally. The recent resignation of Jonathan Farnell, Binance’s UK chief, highlights the ongoing issues the exchange is grappling with. With the FCA cracking down on crypto promotions and adding unauthorized firms to its list, Binance has been forced to suspend new customer registrations in the UK. This follows a trend of top officials leaving the company, including Stéphanie Cabossioras. As Binance searches for an FCA-authorized partner, its future in the UK remains uncertain. The regulatory landscape continues to evolve, and Binance must navigate these challenges to maintain its position as one of the world’s largest crypto exchanges.
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