Is Binance regulated in the UK?

Binance operates in the UK with limited FCA registration, offering spot crypto trading but restricted from regulated financial products like derivatives.

Jul 02, 2025 at 10:01 pm

Understanding the Regulatory Framework of Binance in the UK

Binance, one of the world’s largest cryptocurrency exchanges by trading volume, has faced increasing scrutiny from regulators globally. In the United Kingdom, the regulatory landscape for cryptoassets and exchanges is primarily overseen by the Financial Conduct Authority (FCA). As of recent years, the FCA has taken a firm stance on crypto-related businesses operating within its jurisdiction.

The FCA requires all cryptoasset firms, including exchanges like Binance, to register under the Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations. This registration ensures that companies implement robust customer due diligence processes, report suspicious activities, and maintain proper compliance frameworks. However, Binance's relationship with the FCA has been complex and often contentious.

Binance’s Registration Status with the FCA

In June 2021, the FCA issued a public warning stating that Binance Markets Limited, the UK-based entity of Binance, was not authorized or regulated by the FCA for any financial services activities. This announcement raised concerns among UK users about the legality and safety of using Binance services.

Despite this, Binance has since made efforts to comply with UK regulatory requirements. The company submitted an application to the FCA for registration under the Money Laundering Regulations 2017. However, as of the latest updates, Binance Markets Limited remains in the “application under review” status, meaning it has not yet received full approval to operate under FCA supervision.

This lack of formal authorization restricts Binance from offering certain services in the UK, particularly those involving regulated financial instruments such as derivatives or securities tied to cryptoassets.

Services Offered by Binance in the UK

While Binance cannot offer fully regulated financial products in the UK, it still provides access to spot trading of cryptocurrencies for UK residents. Spot trading refers to the direct buying and selling of digital assets at current market prices without leverage or margin.

UK users can continue to trade major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) through Binance’s international platform. However, Binance has implemented restrictions on certain features for UK customers, including:

• No access to Binance Earn products such as staking or savings plans
• No availability of futures or leveraged tokens
• Limited access to new token listings until they are assessed for compliance

These restrictions reflect Binance’s attempt to align with the FCA’s expectations while awaiting final regulatory clearance.

How Binance Complies with UK AML Requirements

Even though Binance is not yet fully authorized by the FCA, it claims to adhere to UK anti-money laundering laws by implementing internal compliance measures. These include:

• Know Your Customer (KYC) checks for UK users
• Transaction monitoring systems to detect and report suspicious activity
• Record-keeping practices that meet regulatory standards

Users are required to complete identity verification before engaging in higher-volume trades or withdrawals. Binance also collaborates with third-party compliance tools to ensure adherence to sanctions lists and other regulatory mandates.

However, critics argue that these self-imposed measures may not be sufficient substitutes for actual regulatory oversight. The absence of formal FCA authorization leaves some uncertainty regarding the enforcement of consumer protections and dispute resolution mechanisms for UK users.

Comparison with Other Regulated Exchanges in the UK

Unlike Binance, several other cryptocurrency platforms have successfully obtained FCA registration or authorization. Examples include Coinbase UK, Revolut, and Gemini Europe Trading Limited. These entities are permitted to offer broader financial services and enjoy greater trust among UK consumers due to their regulatory status.

Binance’s delayed registration process highlights the challenges faced by global exchanges attempting to enter or remain compliant in highly regulated markets like the UK. While Binance continues to negotiate with the FCA, UK users must weigh the benefits of using a large, feature-rich exchange against the potential risks associated with its current regulatory standing.

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Frequently Asked Questions

What does it mean if Binance isn’t regulated by the FCA?

If Binance is not regulated by the FCA, it means it hasn't completed the full authorization process required to offer regulated financial services in the UK. While spot crypto trading is generally allowed, certain products like derivatives or interest-bearing accounts aren't available to UK users.

Can UK users legally use Binance?

Yes, UK residents can legally use Binance for spot trading of cryptocurrencies, provided they follow tax obligations and comply with KYC procedures. However, they should be aware that some services are restricted due to regulatory limitations.

Is my money safe on Binance if it’s not FCA-regulated?

Binance employs security measures such as cold storage and two-factor authentication to protect user funds. However, lack of FCA regulation means there is no government-backed compensation scheme if something goes wrong, unlike with traditional banks or fully regulated platforms.

Will Binance ever get fully approved by the FCA?

There is no official timeline for Binance’s full approval by the FCA. The process involves extensive review of compliance systems, corporate governance, and risk management frameworks. Until then, users should proceed with caution and stay updated on regulatory developments.