Report: Binance Applies for FCA License to Reenter UK Market
Binance is reportedly set to seek authorization from the United Kingdom’s Financial Conduct Authority, aiming for a possible re-entry into the UK market when comprehensive crypto regulations are enacted in 2027.
Summary
- Binance reportedly aims to apply for FCA authorization when the six-month window in Britain opens in September.
- The FCA continues to restrict Binance Markets Limited from performing regulated activities without written consent.
- Application submissions will be accepted between September 30, 2026, and February 28, 2027, prior to the October 2027 implementation.
- Submitting an application does not guarantee approval, permission for relaunch, or acceptance by UK regulators.
- Authorized crypto firms must meet standards related to capital, governance, custody, financial crime, and consumer protection.
The exchange plans to file an application once the FCA opens its authorization gateway on September 30, according to a report from The Telegraph on August 15. Binance has not publicly confirmed the filing nor specified which legal entity would apply.
If successful, the application could enable Binance to offer regulated services to UK residents when the new framework takes effect on October 25, 2027. However, approval is not guaranteed, and the FCA has not indicated that it expects to authorize Binance.
The existing restrictions imposed by the regulator on Binance Markets Limited remain in effect.
Binance must tackle restrictions from 2021
The FCA set conditions for Binance Markets Limited back in June 2021, preventing the company from engaging in regulated activities without prior written consent from the regulator.
The current warning from the FCA states that no other entity within the Binance Group has UK authorization, registration, or a license to perform regulated activities in the country.
The FCA previously expressed concerns that Binance Markets Limited could not be effectively supervised, citing the complexities of the group’s structure and the high-risk nature of its products.
In 2023, Binance withdrew an application to cancel its unused UK permissions, resulting in no Binance entity being authorized to conduct a regulated cryptocurrency business in Britain.
The exchange also ceased accepting new UK customers in October 2023 after the FCA implemented expanded financial promotion regulations. Initially, Binance relied on an authorized firm, Rebuilding Society, to approve its UK marketing.
However, after the FCA restricted Rebuilding Society’s ability to approve crypto promotions, Binance announced via an official update that it would pause new registrations while exploring alternative compliant arrangements.
The FCA application window opens on September 30
The UK’s new crypto authorization window will be active from September 30, 2026, until February 28, 2027, with the full regulatory regime scheduled to commence on October 25, 2027.
As reported by crypto.news, businesses operating in Britain must receive new authorization before engaging in activities covered by the new regulations. Existing registrations under anti-money laundering rules will not automatically convert.
Firms applying within the window may benefit from transitional arrangements while the FCA evaluates their applications. Those applying after February 28 will not enjoy the same protective measures and may need to suspend relevant services until authorization is granted.
The FCA urges applicants to file early, stating that earlier submissions allow for more assessment time and a longer duration for which eligible companies can rely on transitional provisions.
Filing an application is not tantamount to receiving a temporary license. Applicants must meet the regulator’s criteria before being granted permission, and companies cannot assume approval solely based on meeting the filing deadline.
FCA authorization would entail broader requirements
The new framework broadens the FCA’s oversight beyond just financial promotions and anti-money laundering registration. It encompasses trading platforms, transaction dealings, custody, staking, lending, and certain stablecoin activities.
Authorized firms will need to adhere to prudential regulations, operational resilience regulations, and financial crime controls. The framework also includes the Consumer Duty and the Senior Managers and Certification Regime for enterprises that conduct regulated crypto activities.
Trading platforms will face expectations regarding disclosures, market abuse controls, and asset admission criteria. Custodians will have to comply with regulations related to client asset ownership, record maintenance, reconciliation, and private key management.
David Geale, the FCA’s Executive Director for Payments and Digital Finance, stated that the regime would hold crypto firms to “similar standards” as those applicable to other financial services businesses in the UK.
The application review process is expected to scrutinize Binance’s governance, ownership, compliance systems, and capability to meet ongoing supervisory requirements. The FCA retains the authority to reject applications that do not meet its minimum standards or “fit and proper” tests.
Binance has not revealed which services it intends to apply for permission to provide in the UK. It also hasn’t clarified whether the relaunch would include spot trading, custody, staking, or other products.
Binance will face competition from registered UK firms
Should Binance enter the UK market, it will encounter competition from several firms that already possess FCA registrations under the current anti-money laundering framework.
For example, Coinbase obtained permission to directly offer cryptocurrency services through its British entity in February 2025. Additionally, IG Digital Assets has joined the FCA’s cryptoasset register.
However, such registrations do not guarantee authorization under the 2027 framework. Every company engaging in newly regulated activities must submit a fresh application or request modifications to its existing permissions.
Furthermore, Binance’s efforts in the UK come on the heels of regulatory challenges elsewhere in Europe. The exchange withdrew its application for authorization under the European Union’s Markets in Crypto Assets regulation in June.
In related news, Binance suspended most services for EU residents after failing to meet licensing deadlines but stated its commitment to finding an alternative way to enter the European market.
It is important to note that the UK process is distinct from the EU framework. FCA authorization will only address Binance’s legal status under UK law and will not facilitate operations across the European Union.
A filing and FCA decision are forthcoming
The next verifiable step will be Binance’s application submission post-September 30. Neither the exchange nor the FCA has issued a notice regarding the application process.
The regulator does not guarantee that applications submitted during the designated window will be reviewed and decided prior to October 2027. Eligible firms may continue certain specified activities under transitional provisions while awaiting an FCA decision, provided they meet the relevant conditions.
A successful relaunch for Binance would require affirmative action from the FCA and potentially the removal or modification of existing restrictions on Binance Markets Limited. The entity granted authorization would also need to be listed on the FCA register.
Until these steps are completed, the reported application remains a potential plan rather than an assured UK comeback. Existing consumers should not interpret this as evidence that Binance currently holds an FCA license.