- Binance has caught the ire of many different global regulators.
- U.S. regulatory hostilities have the firm looking to the UK.
- The UK is preparing to be a hub for crypto and potentially a home to Binance.
Many crypto household names have found themselves in the sites of the SEC and other U.S. regulators, including Binance. However, the hostile regulations make the world’s biggest exchange look to different shores.
Binance’s chief strategy officer Patrick Hillmann said, in the same breath, that the U.S. “has been very confusing over the past six months” and that the exchange would do “everything we possibly can” to be regulated in the UK.
As the U.S. continues to drive crypto companies away, the UK is working to open its doors.
UK More Agile Than EU?
At the same conference where Hilmann condemned the U.S.’s stance, London City minister Andrew Griffith said there were regulatory proposals to “build an economy based on technology and innovation.”
The UK has spoken openly about embracing crypto, proposing various regulations to become a global center for the industry. However, the UK government is competing with the EU’s MiCA regulations, which recently passed.
Despite trailing the EU on crypto rule implementation, the government argues its approach will be more “agile” than the EU’s.
While the UK framework has not been entirely fleshed out yet, it is apparent in the country’s approach it will be aimed at fostering innovation while protecting users – in stark contrast to the U.S.’s ‘regulation by enforcement, which has already stung Binance.
Binance in Regulator Sights
In recent months, Binance has been targeted by both the Commodity Futures Trading Commission and the Department of Justice. The Securities and Exchange Commission is also on its case via alleged connections between Binance and the U.S. branch, Binance.US.
The UK financial watchdog, the Financial Conduct Authority (FCA), said in 2021 that the firm failed to provide basic information about its business, adding it was “not capable of being effectively supervised.”
Despite this clash with the FCA, Hillmann stated Binance would do “everything we possibly can” to become fully regulated in the UK as it sees no point in pursuing a stake in the U.S. at this time.
On the Flipside
- Hillmann showed some optimism that the current stance of the U.S. could change. 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,” he said.
Why You Should Care
The U.S. hostilities toward crypto companies are starting to have an impact. The U.S. is no longer a destination of blockchain and crypto innovation and could leave the Super Power trailing in any technology arms race.
Read more about the SEC suspicions between Binance and Binance.US:
Binance Leaks Spell Trouble with SEC, ‘Nuclear Fallout.’
Read more about PayPal’s $1 billion crypto holdings:
The Truth of PayPal’s $1 Billion Crypto Holdings Filing to the SEC.