Binance’s UK Woes Fuel Migration to Rival Crypto Exchanges: Report

8 July 2021

The recent crackdown on Binance by the U.K.’s financial services regulator has fueled a surge in customer inflows to rival crypto exchanges.

  • Bitstamp, based in Luxembourg, has seen customer numbers grow by 138% since the Financial Conduct Authority's June 25 notice that Binance Markets should not be operating in the U.K., CNBC reported Thursday.
  • "We're seeing an increase in customers in the U.K. coming to us, with no changes in marketing," Bitstamp CEO Julian Sawyer said.
  • Sawyer described the increase as "a flight to safety," comparing it to customers changing bank accounts if they heard their current provider was less secure.
  • Kraken and Gemini are also gaining clients, according to CNBC's report. The share of signups from the U.K. has "approximately doubled" compared with other markets, a Kraken spokesperson said.
  • As of the end of June, just six companies had successfully completed the process to register with the FCA, and 64 had withdrawn their applications. Gemini entities count for two of the six.
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