Leading cryptocurrency exchange Binance has revealed plans to launch a UK-based digital asset platform that will be regulated by the UK Financial Conduct Authority (FCA).
According to a report by Reuters on Wednesday, the Malta-based exchange is planning to launch the UK outfit later this summer. Additionally, Reuters reported that the exchange is considering up to 65 digital assets for support as of the launch date.
Binance currently supports users in the Great Britain region, however, they are being served by its Jersey subsidiary. They can make trades using both Euros and UK pounds.
Similarly, the new exchange will also support these two currencies and allow direct fiat deposits and withdrawals through the UK’s Faster Payments Services as well as the Single Euro Payments Area network.
This news comes barely a month following the exchange’s appointment of the recently acquired hire Teana Baker-Taylor who was previously serving as an executive at Coinfloor.
Taylor was brought aboard to oversee the UK business as the Director of Binance in the UK. Speaking to Reuters, Taylor noted that:
“interest and participation in the UK digital asset markets is growing; not just in-depth with its current participants, but also in breadth.”
Cryptocurrency-focused businesses in the UK are required to abide by newly announced regulations dubbed MLD5 (or EU’s Fifth Money Laundering Directive) as well as other local MLR (money laundering regulations) provisions.
These businesses are required to be registered not later than January 10th, 2021. However, since Binance UK is a new business, it does make sense to start on the right foot with all the regulations and laws abided by before launching to ensure a smooth operation go forward.
“A business must comply with the MLRs in relation to crypto asset activities. FCA has powers to supervise and enforce under the MLRs. New businesses need to be registered before they can carry on crypto-asset activity,” the FCA ordered in a statement on its website.
Binance believes that the easiest way to take crypto mainstream is to reduce any barriers to entry for new investors. Hence the creation of local subsidiaries in various jurisdictions to ensure more fiat-to-crypto platforms. Some of its platforms also support advanced trading catering to the professional traders and institutions.
“As crypto services mature and evolve, we’re able to create new options to engage and capture interest from a wider audience with varying risk appetites, such as products that earn a yield for participation, like staking and passive savings,” Taylor said.
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