Binance UK CEO Buckles Under New FCA Rules: Report

Binance UK CEO Jonathan Farnell has reportedly stepped down after the UK's Financial Conduct Authority (FCA) increased the compliance burden on crypto companies. The alleged move leaves Binance as the sole representative of UK director IIir Ergis Laro.

Farnell previously worked at eToro and served as director of Binance UK until October 3. Prior to the recent additions of the FCA, Binance was responsible for helping to comply with laws in the UK.

Binance seeks new UK partner after FCA rejection

The FCA's new rules address consumer concerns, requiring crypto firms to advertise only through approved firms. Previous laws focused on preventing money laundering.

Binance has stopped serving UK customers a week after the FCA rejected its latest compliance proposal. The FCA also banned Binance's trading partner from promoting crypto in the UK.

Since then, Binance has been actively looking for a new PR partner. OKX and Coinbase have enlisted the services of one of three FCA-licensed firms to help ensure they are approved.

The crypto industry has criticized the FCA's rejection of crypto applicants in 2022. The agency defended the approach, arguing that rejection could help other companies prepare successful submissions.

It rejected or dismissed most of the 195 applications for non-compliance with anti-money laundering laws. A total of 29 companies withdrew their applications by 2022.

Controllers of Roll Tendils Post-FTX

The FTX collapse regulators will pay more attention to how crypto companies handle customer funds. The UK's Advertising Standards Authority is one of the first globally to support consumer protection against misleading crypto advertising.

Read more: FTX Collapse Explained: How the Sam Bankman-Fried Empire Fell

Regulatory regimes in Hong Kong, South Korea, and, more recently, Europe are heavily biased toward consumer protection. The compliance burden has caused some companies to pull out of certain jurisdictions, citing sky-high engineering costs that exceed their ability to make a profit.

Binance pulled out of the Dutch and German markets after failing to meet regulators' requirements. This, and the departure of several CEOs following US civil and criminal inquiries, briefly hurt the exchange's trading.

Read more: 7 best Binance alternatives in 2023

Credit card payment processor Checkout.com has canceled its deal with Binance, removing a critical link between the exchange and its UK users. The company has lost fiat partners in Australia.

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