Binance’s UK chief, Jonathan Farnell, who also serves as the CEO of subsidiary Bifinity, has announced his resignation from the company, joining a growing list of executive departures. This comes on the heels of the world’s largest cryptocurrency exchange suspending new customer registrations in the UK due to increased scrutiny from the Financial Conduct Authority (FCA), the country’s regulatory body for financial services.
Regulatory Challenges
Binance has faced a series of challenges related to regulatory crackdowns, both in the United States and the UK. The company has experienced multiple high-level resignations, indicating the mounting pressure and ongoing issues it is currently navigating.
Last week, Stéphanie Cabossioras stepped down as the managing director of Binance’s French unit. Prior to her departure, Farnell played a significant role in Binance’s efforts to establish itself as a regulated entity in the UK.
“We’d like to thank Jonathan for his contributions and wish him all the best on his next challenge,” said a spokesperson from the exchange.
Before joining Binance in 2021, Farnell led the compliance department at the trading platform eToro. He also co-founded Arro Money, a FCA-regulated entity that was later acquired by the eToro Group. In March 2022, Farnell took on the position of chief of Bifinity, a fiat-to-crypto payments entity within Binance.
FCA’s Stricter Regulations
The Financial Conduct Authority in the UK has implemented stricter regulations concerning cryptocurrencies, with 145 crypto businesses added to its expanded list of unauthorized firms. These new rules, which went into effect on October 8, require all firms to comply with the financial promotion regime. The FCA has also imposed restrictions on Binance’s promotional capabilities within the UK.
As a result, Binance temporarily halted the registration of new users from the UK while they search for a new FCA-authorized partner to approve their crypto promotions. This ongoing face-off between the FCA and Binance started in June 2021 when the regulator banned the exchange from carrying out any regulated activity in the UK. The FCA also issued a warning to consumers about the risks of investing in cryptocurrencies.
In March 2022, the FCA raised additional concerns about Binance’s association with UK crypto firm Eqonex through its entity Bifinity. Eqonex is the parent company of Digivault, an FCA-registered entity.
