Binance’s payment partner secures UK licence

Banxa, a payment solution provider that works with the world’s leading crypto exchange Binance, has legalised its operations in the UK. The Financial Conduct Authority (FCA) granted approval to Banxa’s application last week that means the company’s official entry into the UK’s crypto market.

Brinda Paul, the General Manager of Banxa UK, emphasised the thorough scrutiny by the FCA during the registration process before granting approval.

Notably, the UK witnessed a significant decline in the number of crypto companies receiving approvals in 2023, with only four approvals compared to 23 in 2021. This decline was attributed to the implementation of stringent advertising regulations. Consequently, major players like Binance and PayPal were forced to limit their operations in the country.

Banxa specialises in providing fiat payment gateways for crypto exchanges. The agreement between Banxa and Binance was signed four years ago.

Now Banxa provides fiat payment processing services for several leading crypto exchanges. This entails enabling users to trade digital assets using fiat currencies.

Earlier, Binance launched a dedicated online platform for its clients in the UK. However, the company had to halt new customer registrations in the region due to lacking a licence from FCA. Binance attributed this decision to evolving British regulations concerning crypto advertising. Notably, although Banxa’s licence permits advertising activities, it does not have the right to approve promotions from its partnering entities.