Binance plans to apply for a UK crypto license from the Financial Conduct Authority as part of a strategy to re-enter the UK market ahead of the FCA’s new regime.

The company has faced repeated setbacks in the UK, including a 2021 FCA order to halt activities and a 2023 restriction on promotion via a local partner.

Binance halted onboarding of new UK users in 2023 in response to UK financial promotion rules and has not commented on licensing or current UK operations beyond saying it does not comment on speculation.

The report places Binance’s move in the broader crypto industry context, referencing related items from Cryptoprowl and The Telegraph.

The FCA emphasizes consumer protection and transparency as core goals of the new regime, while noting persistent risks in crypto markets.

A Reuters report says Binance provided Russian authorities with transaction data on crypto donations to Ukrainian campaigns used in a terrorism-financing case against a Russian IT specialist.

Even if Binance clears the gateway, the move will signal to rivals the true cost and requirements of UK market entry.

David Geale of the FCA indicated the new framework will require crypto firms to meet standards similar to those for other UK financial service providers.

The regime replaces ad hoc regulation with a formal authorization process, likely increasing entry costs and compliance requirements for all crypto firms operating in Britain.

Compliance for re-entry includes establishing a UK presence, governance oversight, adequate financial resources, and demonstrable fitness and propriety.

The regime aims to place crypto firms under the same supervisory standards as traditional financial institutions, potentially legitimizing Binance’s UK presence and easing regulatory relationships elsewhere.

Binance’s compliance history matters: it pleaded guilty in the US in 2023 to AML and sanctions violations, paying over $4.3 billion, with ongoing scrutiny including alleged sanction violations and other legal actions.