Is Binance Legal in UK? Is Binance Safe?
Choosing a trustworthy cryptocurrency exchange is crucial as it directly impacts the safety and security of your digital assets. The high risk of scams in this area necessitates extreme caution from users.
Our analysts have noticed a growing interest in Binance services among users in the UK. However, questions remain regarding its safety and legal status within the UK. Traders Union experts have addressed this concern by crafting a detailed review that explores both the pros and cons of using Binance.
So, let us tell you if Binance is allowed in the UK and if it's safe to use for trading.
Is Binance legal in UK? Does it have a license?
Binance is a regulated exchange that provides services in most countries worldwide, except for those under international sanctions, such as North Korea, Iran, Syria, Cuba, and regions like Crimea, Donetsk, and Luhansk. Restrictions may also apply based on requests from local regulators. We compared Binance's level of regulation with the top two global competitors and the top two competitors available in your country. Exchanges with Tier-1 regulation are generally considered the safest. However, Binance's safety level is also influenced by other factors outlined below.
| Binance | Bybit | Bybit.eu | |
|---|---|---|---|
Government-regulated |
Yes |
Yes |
Yes |
Tier-1 regulation |
Yes |
Yes |
Yes |
U.S regulation |
No |
No |
No |
FCA U.K |
No |
No |
No |
AUSTRAC in Australia |
Yes |
No |
No |
DFSA in UAE |
No |
No |
No |
AMF in France |
Yes |
No |
No |
Spain |
Yes |
No |
No |
Germany |
No |
No |
No |
Singapore |
No |
No |
No |
MFSA in Malta |
No |
No |
No |
Seychelles |
No |
Yes |
No |
Other countries |
OAM (Italy), FIU (Lithuania), Swedish Financial Supervisory Authority, Bank of Spain, AFSA (Kazakhstan), CASP (Bahrain), VARA (Dubai), FIU-IND (India), Bappebti (Indonesia), JFSA (Japan), FSP (New Zealand), Securities and Exchange Commission of Thailand, DASP (El Salvador), CNV (Argentina) |
Austria’s Financial Market Authority (FMA), Georgia, Kazakhstan |
MiCAR (Austria) |
Open an account |
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|
|
Other Binance Security Factors to Consider
| Binance | Bybit | Bybit.eu | |
|---|---|---|---|
2FA |
Yes |
Yes |
Yes |
Verification (KYC) |
Yes |
Yes |
Yes |
Successful hacks |
Yes |
Yes |
No |
Cold wallet storage |
Yes |
Yes |
Yes |
Investor protection fund |
Yes |
Yes |
Yes |
Open an account |
|
|
|
Short summary about the Binance exchange
The Binance exchange is one of the largest cryptocurrency exchanges in the world with its headquarters in Hong Kong. According to the CoinMarketCap cryptocurrency portal, Binance holds the top spot in terms of aggregate indicators of the platform's daily turnover, the number of novices and active users, liquidity, and web traffic (ranking, queries, statistics in search engines, etc.). The exchange is also a cryptocurrency startup that has its own “native asset” used in the Binance ecosystem as the “basis gas” (payment internal unit). More about Binance Card
| 💰 Account currency: | EUR, USD, other currencies, and cryptocurrencies |
| 🚀 Minimum deposit: | From $1 |
| ⚖️ Leverage: | Up to 1:125 |
| 💱 Spread: | 0.1% |
| 🔧 Instruments: | Cryptocurrencies |
| 💹 Margin Call / Stop Out: | No |
Binance Pros and Cons
👍 Binance Pros:
•low commissions due to liquidity and trading volumes.
•high platform performance;
•proprietary BNB Coin which allows Binance to reduce the commission size;
•a proprietary cold wallet guarantees the security of your crypto assets by storing them.
👎 Binance Cons:
•complex verification procedure;
•the exchange is not licensed by a regulator;
•The platform can go offline without warning;
•there are complaints about the technical functionality of the platform;
•there is an intricate mechanism for calculating commissions and rewards (grid system Maker/Taker).
Rules and Regulation
Licensing in the UK
Exchanges in the UK must be approved by the FCA and meet the requirements regarding anti-money laundering and combating the financing of terrorism (AML/CFT). These rules came into effect in 2020. To obtain a crypto license in the UK, a company must:
- register;
- open an account with a British bank;
- open an office;
- observe AML/CFT policies;
- establish a Know Your Client (KYC) procedure;
- have an internal audit service.
Investor protection in the UK
Besides the FCA, investor protection in the UK is ensured by the Financial Services Compensation Scheme (FSCS), under which users get compensation in case of a company’s bankruptcy.
Taxation in the UK
In the UK, cryptocurrency is not considered to be a payment method, but is classified as an asset. It means that profits from cryptocurrency trading are subject to a 10% or 20% capital gains tax (CGT).
Do I recommend using Binance in the UK?
The Binance cryptocurrency exchange can certainly be recommended for traders from UK. The platform is well suited for trading cryptocurrencies. Despite that the company does not have a financial license, as this kind of activity is not subject to licensing in UK in general, the exchange has a good reputation. The company’s team has developed reliable account protection and closely monitors the security of the platform.
FAQ
Can I work with crypto exchanges considering that they don’t have a license in UK?
The fact that a crypto exchange does not have a license doesn’t mean that traders from UK will have problems while working with it. Cryptocurrency exchanges are not subject to licensing in many countries, while there are many exchanges with good reputation. Assess the available information about the exchange and check its reputation.
What security methods for account protection do crypto exchanges employ?
Cryptocurrency exchanges may offer various security methods. These include the two-factor authentication, first and foremost, and also such methods as a security question, additional passwords, etc.
Can an exchange that has had a security-related incident in the past be trusted?
You need to check whether such incidents were regular. If it was one episode several years ago, while the reputation of the exchange is good, you can work with such an exchange.
Should I work with an exchange if I have doubts about its reputation?
No. Always choose the cryptocurrency exchanges that have a good reputation.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
