In response to regulatory constraints imposed by the UK’s Financial Conduct Authority (FCA), Binance, the world’s largest cryptocurrency exchange, has temporarily ceased accepting new UK customers as of October 16th. The decision was made after its UK promotions approver, Rebuilding Society, was struck by an FCA restriction concerning new crypto promotion rules.
Existing Binance Users Unaffected
Existing Binance users can continue using the platform without interruption, provided they have successfully completed the “Investor Declaration” and “Appropriateness Test” following the new regulations. However, this period will not make new products or services available to UK users.
Under the revised regulations, which came forward on October 8th, firms registered with the FCA can self-approve their advertisements. Alternatively, they may seek the assistance of authorized entities to approve their promotional content.
Binance has stated that it is actively searching for a new FCA-authorized partner in the UK. While the exchange strives to restore its financial promotions, it acknowledges the necessity for temporary restrictions on its platform and mobile app for UK users.
Binance has emphasized its dedication to working closely with the FCA (Financial Conduct Authority) to ensure that these advancements do not have any negative impact on its users. The exchange will continue displaying risk warnings prominently and encourage UK users to refer to its “info” section for guidance before getting involved in cryptocurrency investments.
Binance Seeks New FCA-Authorized Partner
Just days prior to the FCA’s action, Binance announced its partnership with Rebuildingsociety.com. The purpose of this collaboration is to align with the new marketing regulations. These regulations stipulate that cryptocurrency companies must be registered with the FCA in order to self-approve their promotions. However, unregistered crypto firms can still have their advertisements authorized by approved entities.
Despite collaborating with Rebuildingsociety.com, Binance faced a setback when the FCA issued an alert forbidding the approval of crypto advertisements for companies and demanding the withdrawal of any existing approvals. In response, Rebuildingsociety.com has been given a specified deadline to inform the FCA in writing about its compliance with the required criteria.
The FCA justified its action by stating that it can impose requirements on firms when necessary to protect consumers. This action underscores cryptocurrency exchanges’ regulatory challenges in the rapidly evolving crypto landscape.
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