Binance’s UK Chief Resigns Amid Regulatory Crackdown

KEY POINTS

• Binance’s UK chief resigns due to tougher regulations.
• The FCA raised concerns about Binance’s UK operations.
• Binance halted new UK user registrations due to regulatory pressure.

According to corporate papers and his LinkedIn profile, Jonathan Farnell, the head of Binance’s UK operations, has left his role at the organization’s affiliate, Bifinity. This move occurs as regulatory pressure on Binance increases in the US and the UK.

Farnell moved from a position as head of compliance at eToro to join Binance in 2021. His original role at the company was compliance, but he was eventually named head of Binance’s UK operations. In March 2022, he was appointed CEO of Bifinity, a payment company founded by Binance, while continuing to serve as a director at Binance Markets Limited in the UK.

Farnell, however, left his position as senior compliance officer at Binance Europe in June and left Binance Markets Limited in September. His resignation is the most recent in a string of prominent employees who have left Binance in recent months, including the general counsel and directors of regional operations.

In order for Binance to receive regulatory permission in the UK, Farnell was a key player. However, the Financial Conduct Authority (FCA) interfered in a contract between Bifinity and Eqonex and voiced worries about Binance’s UK branch.

Earlier this week, Binance stopped taking on new users in the UK due to the FCA’s recent crackdown on cryptocurrency advertising and promotions. Prior to the new restrictions taking effect, rival exchange Bybit likewise shut down its UK operations.

It’s unclear who will take over Binance’s UK operations now that Farnell has resigned. Ilir Laro was recently named as a director, according to corporate papers, but Laro hasn’t made any public remarks about it.

For Binance to continue offering financial rewards to current customers, the company is now on the hunt for a new FCA-approved partner in the UK. However, the regulatory pressures are not encouraging for Binance’s chances of future growth in the nation. Farnell’s resignation indicates that Binance is having trouble assembling an executive team that can guide the company through increasingly strict monitoring.