Binance is reportedly preparing to seek authorization from the UK Financial Conduct Authority (FCA) to relaunch certain services in the country, marking a potential return after the exchange’s local entity was barred from offering regulated activities in June 2021.
Background: FCA curbs since 2021
In mid-2021, the FCA issued a consumer warning related to Binance’s UK subsidiary, stating it could not conduct regulated activities without prior consent. While trading in unregulated cryptoassets is not prohibited in the UK, activities that fall under the country’s financial services rules—such as offering derivatives or certain types of custody—require FCA oversight. Since then, Binance has operated under restrictions in the UK market, limiting the services it can provide to local users.
Path to compliance under evolving UK rules
The reported plan to pursue FCA approval comes as the UK continues to refine its crypto regulatory framework. The FCA requires crypto firms carrying out specific activities—such as exchange or custody services—to register for anti-money laundering supervision under the Money Laundering Regulations. In addition, the UK’s cryptoasset financial promotions regime, introduced in October 2023, mandates that firms marketing crypto to UK consumers must either be FCA-authorized or have their promotions approved by an FCA-authorized entity.
Following the rollout of those rules, Binance paused new UK user registrations in October 2023 after the FCA placed restrictions on a third-party firm that had been approving its marketing materials. Any renewed push to obtain FCA authorization or registration would be aimed at aligning Binance’s UK operations with these requirements, enabling compliant onboarding and communications with local customers.
What a relaunch would mean
An FCA-approved return would potentially allow Binance to restore a broader suite of services in the UK, subject to clear regulatory permissions and the scope of authorization granted. It would also place the exchange among a growing group of crypto businesses seeking formal regulatory standing in one of Europe’s largest financial markets.
The UK government and regulators have signaled plans to bring additional crypto activities—such as fiat-backed stablecoins used for payments—into the regulatory perimeter, with further rulemaking expected. Securing the right approvals now could position market participants to operate more predictably as those standards take shape.
Wider compliance efforts
Binance has faced heightened regulatory scrutiny globally over the past few years and has undertaken a series of compliance measures and organizational changes. In late 2023, the exchange reached a multibillion-dollar settlement with U.S. authorities addressing historical compliance violations and announced leadership changes as part of a broader overhaul. A renewed UK application would be consistent with that shift toward more formal regulatory engagement in key jurisdictions.