Binance Reopens Staking in UK as Regulators Clarify Rules for Professionals

Binance, the world’s largest cryptocurrency exchange, has resumed offering its full suite of Binance Earn products to UK Professional Users, a move that aligns with recent regulatory clarifications in the United Kingdom. The Financial Conduct Authority (FCA) has confirmed that staking is not classified as a collective investment scheme, allowing firms like Binance to re-open services previously restricted due to regulatory ambiguity. This development enables high-net-worth individuals, institutional investors, and exempt entities in the UK to access staking, liquid staking tokens, and other yield-generating services in compliance with local regulations.

Nish Patel, Binance’s UK director and former FCA crypto specialist, emphasized the UK’s evolving regulatory landscape as a key factor in this expansion. Patel noted that the UK is moving toward a comprehensive crypto framework, similar in scope to the EU’s Markets in Crypto-Assets (MiCA) regulation, but tailored to its own legal system. He anticipates this regime will be finalized within the next 12 months, offering greater clarity for both retail and professional investors. The UK’s regulatory approach has been described as cautious and stepwise, with a focus on consumer protection for retail users while providing more flexibility for professional investors.

Binance’s return of Earn products highlights its strategic focus on institutional-grade offerings. The platform’s Ethereum liquid staking token, WBETH, currently holds a 20% market share globally, with over $9 billion in value locked, while its Solana-based BNSOL token commands $1 billion in TVL and serves more than 150,000 users. These figures underscore Binance’s dominance in the liquid staking market and its appeal to professional investors seeking yield and governance participation. Patel highlighted the growing demand for staking as an alternative to traditional fixed-income products, especially as global interest rates trend downward.

The UK’s regulatory approach also differentiates itself from the EU by maintaining access to global order books for domestic institutions, a factor that could enhance the UK’s competitiveness for professional crypto investors. Patel explained that unlike the EU’s MiCA framework, which imposes strict rules on stablecoins and order-book segregation, the UK aims to preserve access to international liquidity, thereby supporting execution quality. This regulatory distinction is attracting institutional investors who prioritize execution efficiency and product flexibility.

Looking ahead, Patel outlined a 12–24 month outlook, which includes the potential regulation of crypto lending in the UK, a feature not currently included in EU’s MiCA package. The UK’s regulatory path is expected to evolve as policymakers prioritize consumer protection while maintaining a competitive institutional environment. For professional investors, this means expanding access to complex products and tools that align with their expertise and risk tolerance. Binance’s approach reflects its broader strategy of building for professional users now, with future readiness for retail expansion as the UK regulatory framework matures.

The UK’s regulatory direction has also influenced broader crypto market trends. With a clear delineation between retail and professional investor rules, the market is witnessing a shift in product availability and marketing strategies. This bifurcation has enabled exchanges like Binance to offer more sophisticated tools to professional clients while adhering to stricter promotional limitations for retail users. Patel emphasized the importance of aligning product design and licensing with these dual regulatory requirements, a challenge that requires both agility and long-term planning.

Source:

[1] Binance Reopens Earn Products to UK Users (https://cryptonews.com/news/binance-reopens-earn-products-to-uk-users-following-regulatory-approval/)

[2] From FCA to Binance: Nish Patel on UK Rules, Institutional Appetite, and New Products (https://cryptonews.com/news/from-fca-to-binance-nish-patel-on-uk-rules-institutional-appetite-and-new-products/)