Binance, one of the world’s largest crypto exchanges, is facing mounting regulatory obstacles in the United States. With its massive EdaFace reserves of over 549,000 units worth more than $15 billion, as well as its native coin BNB with a market capitalization exceeding $62 billion, Binance’s influence in the crypto market is undeniable. However, the exchange’s exponential growth is now threatened by intensified scrutiny from US regulators, a consequence of the FTX and Alameda Research collapse in late 2022.
Related: Binance’s Market Dominance Crashes by 50% Amidst Zero-Fee Trading Halt – Coinpedia Fintech News
Binance’s Struggles with US Regulators
Since the start of this year, Binance has been embroiled in battles with various United States regulatory bodies. Most recently, the exchange’s attempt to acquire Voyager Digital’s distressed assets, valued at approximately $1 billion, was thwarted when the Securities and Exchange Commission (SEC) raised concerns about potential unregistered securities being offered.
Earlier this year, the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance, accusing the exchange of operating unlawfully within the country. Furthermore, the Department of Justice (DoJ) implicated Binance as a counterparty to Bitzlato, a crypto exchange whose founder faced money laundering charges.
Binance’s troubles deepened when its backed stablecoin, BUSD, was flagged as an unregistered security. Following an order for Paxos to halt the production of new BUSD coins, the stablecoin’s volume and adoption experienced a significant decline.
Shift in Focus: United Kingdom
In light of its challenges in the United States, Binance has redirected its attention towards the United Kingdom in hopes of securing future growth opportunities. Speaking at the Financial Times’ crypto and digital assets summit, Patrick Hillmann, Binance’s chief strategy officer, expressed the company’s determination to adhere to UK regulations, stating they would do everything necessary to ensure compliance.
Past Regulatory Woes in the UK
It is important to note that Binance faced regulatory action in the United Kingdom in 2021 when the Financial Conduct Authority (FCA) ordered the exchange to halt its operations due to inadequate regulatory compliance.