Binance Seeks FCA Licence as UK Regulatory Framework Tightens

Cryptocurrency exchange Binance is preparing to apply for a licence from Britain's Financial Conduct Authority (FCA), according to recent reports. The move comes as Binance overhauls its UK business, which was previously notified by the FCA in June 2021 that it could not conduct regulated activities in Britain.

The UK regulatory environment has become stricter since then, and Binance had previously said it would halt new user sign-ups in response to UK financial promotion rules in 2023. However, with the rollout of new digital asset regulations scheduled for October 25, 2027, Binance is now attempting to re-enter the formal regulatory system under a new regime.

The FCA's executive director for payments and digital finance, David Geale, explained that the new framework focuses on applying standards similar to those for other UK financial services providers to crypto companies. This raises the likelihood of Binance proceeding with its application process within the given window.