The world's largest cryptocurrency exchange, Binance, has recently criticized the intensifying crackdown on the crypto industry by the U.S. government and revealed its plans of getting regulated in the United Kingdom.
US Regulatory Landscape is "Confusing"
Speaking at the Financial Times' Crypto and Digital Assets Summit in London yesterday, Binance's chief strategy officer, Patrick Hillmann stated that the stringent regulations imposed on cryptocurrencies in the United States have made it challenging to conduct business in the country.
Hillmann pointed out that for the past six months, the regulatory landscape in the United States has "been very confusing." He further explained that the recent regulatory action by the Securities and Exchange Commission (SEC) against Binance's rival, Coinbase, is an indication of how "the U.S. right now is in this strange place."
The U.S. government has increased its scrutiny of the crypto industry following the collapse of FTX, with Binance and Coinbase bearing the brunt of the clampdown. Hillmann expressed optimism that the government will change its current stance, especially as several crypto companies are considering turning their backs on the U.S. and moving to crypto-friendly European countries.
He said, "I expect at some point the US is going to want to pivot and play catch-up to Europe which just passed MiCA, which is a huge step forward."
Binance Looks to Obtain UK Regulatory Approval
Hillmann further revealed the exchange's commitment to doing "everything [it] possibly can '' to obtain regulatory approval in the UK. This latest move mirrors a similar statement by Coinbase's CEO, Brian Armstrong, who stated during the 2023 Innovate Finance Global Summit that the exchange could move its headquarters to the UK amid its regulatory woes.
Binance is looking to mend its relationship with UK regulators. Recall that in 2021 the UK's Financial Conduct Authority (FCA) ordered the exchange to stop offering its services to UK citizens over its failure to provide vital information regarding its business activities. Due to the ban, several banks refused to process customer transactions with Binance.
The FCA also raised concerns over Binance's partnership deal with the UK's primary payment network, Paysafe, in 2022. The regulator pointed out that it still had doubts about the exchange. Binance, however, has maintained that it adheres to regulations relating to money laundering and terrorism financing in the UK.
It is not surprising that crypto firms are becoming increasingly drawn to the UK in their search for regulatory clarity. The UK government is working hard to draft appropriate regulations for the industry as it seeks to become a global crypto hub.
With the crackdown on crypto intensifying in the United States, the UK is becoming more attractive to crypto businesses and investors.
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