Binance has mounted a fresh charm offensive in a bid to restore the crypto firm’s fraught relationship with the UK’s finance watchdog.
The company’s bosses hailed the Financial Conduct Authority’s “reasonable” and “responsible” approach to crypto regulation after they renewed discussions to secure licenses in the wake of its “concerns” over attempts to gain access to UK customers.
In an interview with the Standard, Chief Strategy Officer Patrick Hillmann said: “Our intention and our hope is to be able to get licensed and registered in the UK.
“We’re having those discussions right now. Building trust over time is going to be really important for us to be able to do that so that’s where our focus is.”
In 2021, the FCA ordered Binance to stop all regulated activity in the UK and issued a warning to consumers about the site, adding: “Be wary of adverts online and on social media promising high returns on investments in cryptoasset or cryptoasset-related products.”
The following year, the watchdog expressed its “concerns” over a deal struck with fintech firm Paysafe, through which its users could deposit sterling into Pay.UK bank accounts.
But despite the FCA’s crackdown, Binance bosses signalled their support for the FCA’s hardline approach.
“Our view is that the FCA wants this industry to grow, they just want to make sure it’s done in a responsible way,” Hillmann said.
“They should take their time in doing that and make sure that anyone who is being approved today is going to stand the test of time for when they do have a policy framework in place.
“So I do think they are taking a very reasonable, rational approach to the industry right now.”
Chief Compliance Officer Noah Perlman said: “I think there is a general increased scrutiny in this area given some of the well-publicised issues that this industry has had.
“[But] wherever we are we want to be in sync and collaborative with the regulators and make sure we’re delivering what they need in a transparent way, to ensure that we’re not operating in grey area.”
The comments stand in contrast to remarks by Binance co-founder He Yi, who previously slammed the UK as the “most stressful” country for crypto regulation, while co-founder Changpeng Zhao had warned only “novice regulators…want to be the most strict regulator.”
“Luckily, I have not met any novice ones this year,” he added.
Last year, Binance poached former FCA regulator Steven McWhirter in a bid to strengthen its credentials to gain regulatory approval. So far, though, there has been no indication from the FCA that the firm will be granted further regulatory approval.
Earlier in May, the watchdog teamed up with police to crackdown on illegal crypto ATMs, with warnings by police that the machines were “a key component in the facilitation of money laundering and the movement of funds acquired through criminal activity.”
“The amount of money that’s laundered through traditional means far eclipses – both in notional terms and as a percentage – that that’s going on in crypto,” Perlman said.
“Crypto like anything else has its downsides, but criticising it for being a vehicle for money laundering seems like a pretty lazy analysis.”
Binance has grown to become the biggest crypto exchange in the world, with spot trading volumes of more than $7 billion per day.
