Effective today (Monday), Binance will temporarily halt the registration of new users in the United Kingdom. This move is in response to the recent restrictions imposed by the Financial Conduct Authority (FCA), which prevented Binance's local partner from approving cryptocurrency advertisements.
The crypto exchange had partnered with Rebuildingsociety.com to facilitate the approval of Binance's promotional materials and advertisements, ensuring compliance with the new advertising regulations that came into effect on October 8. However, the FCA announced that Rebuildingsociety.com lacked the authorization to approve crypto-related ads.
The regulator stated: "On October 10, 2023, we imposed restrictions on rebuildingsociety.com Ltd to restrict it from approving crypto asset financial promotions. The FCA can impose requirements on a firm in circumstances where it concludes that it is necessary to do so to advance one or more of the FCA's operational objectives, which includes securing an appropriate degree of consumer protection."
We’re restricting https://t.co/WFdeaFowI0 Ltd from approving #cryptoasset financial promotions. #crypto #FinancialPromotions #FinancialServices https://t.co/xqUnyn83DZ
— Financial Conduct Authority (@TheFCA) October 10, 2023
Binance Faces Challenges with FCA's New Rules
In a statement shared by the company as cited by Coindesk, Binance said that while it ceases accepting new users in the UK for the time being, existing users who have successfully completed the "Investor Declaration and Appropriateness Test" can continue to access the platform's services. However, they will not be permitted to access any new products or services introduced during this period.
Binance had taken proactive steps to adhere to the FCA's evolving regulations. Recently, the platform launched a dedicated domain, www.binance.com/en-GB, catering specifically to retail users in the UK. This domain offers services that align with the updated regulations, including fiat transactions, cryptocurrency deposits and withdrawals, spot trading, margin trading, access to the NFT marketplace, Binance Pay, crypto loans, and the launchpad.
FCA's Licensing Reforms
FCA's new rules state that cryptocurrency firms must be registered with the regulatory authority to approve their promotional materials and advertisements independently. Firms not registered with the FCA can obtain approval from authorized entities. This shift is intended to strengthen oversight and ensure responsible crypto advertising practices in the UK.
In June, Binance withdrew its UK-based subsidiary, Binance Markets Limited (BML), from registration with the FCA. The FCA had initially flagged the subsidiary in mid-2021, triggering alerts from financial market watchdogs worldwide. The FCA subsequently imposed restrictions on BML, preventing the firm from engaging in regulated activities within the UK.
This article was written by Jared Kirui at www.financemagnates.com.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments