Binance Faces Obstacles in Re-Entering the UK Market
The world’s largest cryptocurrency exchange, Binance, is experiencing difficulties in re-entering the United Kingdom (UK) market due to regulatory opposition. Local partners in the UK have shown reluctance to collaborate with Binance, hindering the exchange’s plans.
UK Firms Reject Collaboration Requests
Multiple UK firms that have regulatory permission to approve communications between crypto platforms and their clients have rejected collaboration requests from Binance. The rejections came after concerns expressed by the UK’s Financial Conduct Authority (FCA) to authorized businesses regarding potential collaborations with Binance.
Binance CEO Faces Challenges
Binance’s CEO, Richard Teng, who took charge in November, is facing significant challenges in rebuilding trust among regulators globally. These challenges arose after founder Changpeng ‘CZ’ Zhao resigned as part of an agreement with US authorities, resulting in Binance agreeing to pay $4.3 billion in penalties.
Section 21 Rules and Suspension of UK Access
In the UK, expanded Section 21 rules require most digital-asset service providers to collaborate with third-party companies to offer services. In October, Binance suspended access for new UK customers after the FCA terminated its agreement with its previous partner. However, Binance denies facing opposition in its re-entry attempts.
“Highly Sensitive” Code Exposed on GitHub
Binance faced controversy when its “highly sensitive” cache of code was exposed on GitHub. Although Binance claimed that the exposed codes were outdated and posed minimal risk, the incident raised concerns about potential vulnerabilities in the exchange’s systems.
Potential Risks of Exposed Code
The exposed code contained valuable information for hackers, including diagrams of the company’s infrastructure and scripts related to password implementation and multi-factor authentication. Binance filed a takedown request to remove the exposed code from GitHub, emphasizing the potential risks it posed.
Hot Take: Binance Faces Hurdles in UK Re-Entry
Binance’s attempts to re-enter the UK market are being hampered by regulatory opposition and reluctance from local partners. The UK’s Financial Conduct Authority has expressed concerns about potential collaborations with Binance, leading to rejections from authorized firms.
The exposure of Binance’s “highly sensitive” code on GitHub further adds to the challenges faced by the exchange. While Binance claims minimal risk, the incident highlights potential vulnerabilities in their systems.
Despite these obstacles, Binance remains confident in providing a positive update soon and continues to have ongoing conversations with potential collaborators. The exchange aims to rebuild trust among regulators globally under its new CEO, Richard Teng.
By
By
