What is BNB
BNB is the native token of the Binance ecosystem, the world's largest crypto exchange by volume. Originally created for discounted trading fees on Binance, it now also powers the BNB Chain.
Its value is closely tied to the success and reputation of a single ecosystem/company, a concentration risk worth weighing against more decentralised cryptocurrencies like Bitcoin or Ethereum.
Frequently asked questions
Is BNB regulated in the UK?
The UK has its own evolving regime for cryptoasset regulation, separate from the EU's MiCA framework. Crypto exchanges and custodians must register with the FCA for anti-money laundering purposes, but this doesn't equate to the investor protections that regulated financial instruments like ETFs and shares carry.
What's the difference between buying BNB on an exchange versus via an ETP?
On an exchange you hold the keys directly (or the exchange custodies them for you); an ETP (Exchange Traded Product) is instead a listed financial instrument that tracks the price, purchasable through the same broker account you'd use for ETFs and shares.
How is BNB taxed in the UK?
Gains from cryptocurrencies in the UK are generally subject to Capital Gains Tax, with specific rules that differ from those for ETFs and shares held in an ISA — this is an evolving area, so check the latest HMRC guidance or speak to a tax adviser for your situation.
