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Binance slams US crypto crackdown, and makes bid for UK oversight

Binance has mounted a fresh charm offensive in a bid to restore the crypto firm’s fraught relationship with the UK’s finance watchdog.

Binance, the world’s largest cryptocurrency exchange, has said a crackdown on crypto has made it «very difficult» to do business in the US, adding that it now hopes to be regulated in the UK.

Binance has been the target of US regulators clamping down on perceived illicit activity this year

Binance’s growth as a global cryptocurrency exchange has been remarkable, with a reported trading volume of over $1.5 trillion in 2021 alone.

However, the US regulatory framework for cryptocurrency businesses has presented significant challenges for Binance.

The US Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and other regulatory bodies have taken legal actions against Binance for alleged violations of US securities laws and anti-money laundering regulations.

Binance has also been accused of operating without proper licenses, prompting some US states to ban its services.

Patrick Hillmann, the company’s chief strategy officer, said at the Financial Times’ crypto and digital assets summit that the US “has been very confusing over the past six months”.

He pointed to the Securities and Exchange Commission’s actions against rival excagains Coinbase over alleged securities laws violations as a sign of how “the US right now is in this weird place”.

The Department of Justice also named Binance as a counterparty to Bitzlato, a crypto exchange whose founder was charged with transmitting millions of illicit crypto funds in violation of US money-laundering regulations.

Hillmann said Binance would do “everything we possibly can” to be regulated in the UK

Binance would do “everything we possibly can” to be regulated in the UK
The Binance enforcement case is one of many brought by US regulators against some of the biggest companies in the crypto industry.

In contrast with his comments that it was now a “very difficult time” to do business in the US,

Hillmann said Binance would do “everything we possibly can” to be regulated in the UK.

Binance had previously clashed with London regulators who said the exchange was incapable of being regulated after it failed to provide basic information about its business activity.

The group has no fixed headquarters and offers services around the world.

In 2021, the Financial Conduct Authority ordered the company to stop all regulated activities in Britain,

and last year a joint venture partner said the company had filed a “grossly inaccurate” annual report for one of its UK subsidiaries.

Hillman declined to confirm whether the company had reapplied to the FCA’s registration regime for crypto businesses, which covers companies’ processes to prevent money laundering and terrorism financing.

The EU legislation is intended to provide a framework for regulating crypto assets in the bloc

Hillmann said the «broader regulatory pivot we’ve seen in the US» was different from Binance’s discussions with the CFTC.

However he played down the threat of US enforcement actions on the company and the industry, saying:

«I expect at some point the US is going to want to pivot and play catch-up to Europe, which just passed Mica [the EU’s crypto asset regulation], which is a huge step forward.»

The EU legislation is intended to provide a framework for regulating crypto assets in the bloc, so giving greater certainty to consumers and market participants.

The Binance enforcement case is one of many brought by US regulators against some of the biggest companies in the crypto industry.

Among them, Nasdaq-listed Coinbase is the focus of an SEC investigation into possible securities laws violation.

Crypto payments company Ripple is also engaged in a long-running lawsuit brought by the SEC in 2020 alleging it violated securities laws.

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