Binance Faces These Regulatory Obstacles In Re-Entering The UK Market, Report

According to a Bloomberg report, Binance, the world’s largest cryptocurrency exchange by trading volume, is encountering obstacles to re-enter the United Kingdom (UK) market. 

Local partners in the UK have reportedly shown reluctance to work with Binance due to “regulatory opposition,” hampering the exchange’s plans to regain a foothold in the country.

UK Firms Reject Binance’s Requests For Collaboration

According to the report, multiple UK firms that hold regulatory permission to approve communications between crypto platforms and their clients have recently rejected requests from Binance, as per anonymous sources familiar with the matter. 

These rejections followed concerns the UK’s Financial Conduct Authority (FCA) expressed to several authorized businesses that had inquired about potential collaborations with Binance.

The FCA’s position underlines the significant challenges faced by Binance’s CEO, Richard Teng, who took charge in November to rebuild trust among regulators globally. Teng assumed the top role after founder Changpeng ‘CZ’ Zhao resigned as part of an agreement with US authorities, resulting in Binance agreeing to pay $4.3 billion in penalties.

In the UK, expanded Section 21 rules implemented last year require most digital-asset service providers to collaborate with third-party companies to offer services in the country. 

In October, Binance suspended access for new UK customers after the FCA terminated its agreement with its previous partner, Rebuildingsociety.com. Nevertheless, the exchange has denied facing opposition in its re-entry attempts, stating, “It is not accurate to say that we have been rebuffed by section 21 approvers in the UK.” 

According to Bloomberg, the crypto company claims “ongoing productive conversations” with potential approvers and expresses confidence in providing a positive update soon. 

Previously, the FCA cautioned consumers against using Binance’s services in 2021, highlighting concerns about the company’s global structure and asserting that it was “not capable” of being effectively regulated.

“Highly Sensitive” Code Exposed On GitHub

In a recent development, Binance has been embroiled in a controversy surrounding the exposure of its “highly sensitive” cache of code on GitHub. 

While Binance has refuted the severity of the issue, claiming that the exposed codes were outdated and posed minimal risk, the incident has highlighted potential vulnerabilities that could compromise the security of the exchange’s systems.

According to reports by 404 Media, Binance’s cache of code had been accessible on GitHub for several months. Although the exchange managed to have the data removed through a copyright takedown request, it was not before 404 Media and others had the opportunity to view it. 

Binance, however, emphasized that there is no public evidence to suggest that malicious actors accessed or used the exposed data.

The code cache contained a wealth of information that could be valuable to hackers seeking to exploit vulnerabilities in Binance’s systems. For instance, diagrams showcasing the interlocking dependencies within the company’s infrastructure were found, shedding light on the workings of their operations. 

Additionally, numerous scripts and codes related to password implementation and multi-factor authentication were present in the cache. 

In response to the incident, Binance filed a takedown request to remove the exposed code from GitHub, citing its potential risks to the exchange and its users. 

The request emphasized that using the exchange’s internal code by unauthorized parties could result in severe financial harm and confusion. The company has maintained that the exposed code was outdated and no longer in use, downplaying the potential risks associated with its exposure.

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