Binance wants its new U.K. exchange platform to become a one-stop shop for British and European institutions and retail clients interested in investing in the digital asset class.
Per a report by Reuters on Wednesday, the firm said its new U.K. crypto exchange would offer a local fiat on-ramp into crypto, in pound sterling and euros. Like its other fiat-to-crypto platforms such as Binance Uganda, Binance Singapore, and Binance US, the new U.K. platform will launch with approximately 65 digital assets listed.
But Binance U.K., which Reuters says will be regulated by the Financial Conduct Authority (FCA), the U.K.'s chief financial watchdog, will target a more traditional crowd. Binance U.K.'s new director, Teana Baker-Taylor, who joined the exchange group just last month, had previously worked as HSBC's global strategy head.
As part of her role Baker-Taylor is responsible for spearheading the exchange's expansion across Europe. "Binance U.K. will also serve European customers," a spokesperson told CoinDesk. "The platform caters to both the U.K. and European markets."
The new U.K. platform is expected to launch sometime this summer.
Like other crypto exchanges, Binance has experienced rising interest from institutional investors. The exchange told Decrypt in May, for instance, the number of new institutional clients on-boarded in Q1 2020 was nearly 50% higher than in the preceding quarter.
"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,” Baker-Taylor told Reuters.
Binance U.K. is under the FCA's supervision as a cryptoasset exchange provider. A spokesperson said the platform will only do spot trades.
Binance has been operating a similar trading platform on the Channel island of Jersey, a British dependency, since January 2019. Like the U.K. platform, it allows users to buy and sell cryptocurrencies against the pound and the euro.
The spokesperson told CoinDesk the Jersey platform will continue to operate independently of Binance U.K.
Update (June 17, 12:50 UTC): This article has been updated with additional information from Binance on how its new U.K. entity would be regulated by the FCA.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.