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Binance Eyes UK Relaunch as Russian Client-Data Case Draws Scrutiny
FCA licensing push coincides with questions over past law-enforcement disclosures
TL;DR
- Binance is reportedly preparing to seek FCA authorization to relaunch certain regulated services for UK residents.
- Separately, customer information Binance supplied to Russian authorities was later used in a terrorism-financing case involving donations to Ukrainian groups.
- Binance says it complies with lawful law-enforcement requests subject to applicable legal, privacy and regulatory requirements.
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Binance is reportedly preparing to seek authorization from the UK Financial Conduct Authority as part of a potential return to regulated services for UK residents, even as the exchange faces scrutiny over customer data it previously supplied to Russian investigators. Both developments surfaced on Aug. 17, 2026, putting Binance’s current licensing strategy alongside questions about the consequences of its earlier law-enforcement cooperation.
The Telegraph reported that Binance plans to apply for a UK license as the country prepares to implement new digital-asset rules. The move could allow the exchange to relaunch certain services for residents in 2027, after years of regulatory restrictions affecting its UK business.
Binance has not confirmed that an application will be filed. A Binance spokesperson told Cointelegraph that the exchange “does not comment on speculation surrounding potential licence applications.” Binance also did not respond to questions about its existing UK operations.
Binance prepares for new UK authorization regime
Binance Markets Limited, the exchange’s UK arm, has faced regulatory restrictions since June 2021, when the FCA said the entity was “not permitted to undertake any regulated activity in the UK.” Binance later announced in 2023 that it would stop onboarding new UK users in response to the regulator’s financial-promotion rules.
The FCA announced its new crypto regulatory framework in June 2026. Companies will be able to submit authorization applications beginning in September, with the filing window remaining open until Feb. 28, 2027. The regulatory regime is scheduled to take effect on Oct. 25, 2027.
David Geale, executive director of payments and digital finance at the FCA, said the framework would hold crypto companies to “similar standards” as other UK financial service providers.
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Russian case centers on more than $700 in Ukraine-related transfers
Separate reporting by Reuters said Binance provided Russian authorities with customer records that were later used to charge Yuri Belenkiy, a Russian IT specialist, with financing terrorism over donations to Ukrainian groups.
Reuters, citing law-enforcement documents, said Binance identified Belenkiy as the source of transfers worth more than $700. The exchange also allegedly supplied his date of birth, address, phone number and passport number, along with copies of his Russian passport and Bulgarian residency permit.
Russian authorities detained Belenkiy in September 2025, and he remained jailed awaiting trial when the information was published.
Russia’s Investigative Committee alleged that Belenkiy made the payments between January 2023 and March 2024 after an appeal by exiled Kremlin critic Arkady Babchenko. Investigators said the funds were intended for the Ukrainian military and a group associated with the Azov Brigade, which Moscow classifies as a terrorist organization.
Investigators reportedly requested Belenkiy’s transaction history and received two responses from [email protected]. Binance’s website had directed Russian and Belarusian law-enforcement agencies to that address.
Binance’s current law-enforcement guidelines state that the exchange requires a valid court order, police order or warrant before providing user information in a criminal investigation.
Binance told Reuters that it cooperates with lawful law-enforcement requests subject to applicable legal, privacy and regulatory requirements. The exchange declined to discuss Belenkiy’s case or whether the disclosure may have breached European data-protection rules.
Documents detailing the case were obtained by The First Department, an organization that supports defendants in Russian political cases, from one of Belenkiy’s relatives.
Data disclosure predates and overlaps Binance’s Russia exit
Binance sold its Russian business to CommEX in September 2023, saying continued operations in Russia did not fit its compliance strategy. Binance said at the time that it would retain no revenue-sharing arrangement with CommEX and no option to repurchase the business.
The timing of Belenkiy’s alleged payments spans both sides of that sale. Russia’s Investigative Committee said the transactions began before Binance’s announced exit and continued after the Russian business was sold.
FAQ
Is Binance already licensed to relaunch regulated UK services?
No. Binance is reportedly planning to apply under the FCA’s new authorization regime.
When does the FCA application window close?
Feb. 28, 2027.
Who accused Yuri Belenkiy of financing terrorism?
Russia’s Investigative Committee.
What does Binance say about law-enforcement requests?
It says it complies with lawful requests subject to applicable legal, privacy and regulatory requirements.
This article has been refined and enhanced by ChatGPT.
