The leading cryptocurrency exchange, Binance, has ceased accepting new UK customers as of October 16, in response to the recently implemented Financial Promotions Regime for qualifying crypto assets by the UK's Financial Conduct Authority (FCA). This shift comes as Binance seeks to align its operations with the new regulatory climate.
Initially, Binance had partnered with Rebuildingsociety.com Ltd (REBS), an FCA-authorized firm, to promote its business in the UK. However, due to legally binding requirements imposed on REBS by the FCA, REBS was compelled to withdraw all existing approvals and cease approving financial promotions. This move has left Binance without an approved entity for its financial promotions in the UK.
As a result, Binance is now actively seeking a new FCA-authorized entity to approve its financial promotions. Until such an entity is found and re-approval is secured, temporary restrictions have been placed on Binance's platform and mobile app for UK users. Current UK customers will retain access to existing services but will be prohibited from accessing any new products or services.
On the first day of the new regime, the FCA issued 146 alerts for non-compliance and advised consumers to consult its "Warning List" before making crypto investments. The Financial Promotions Regime, announced in February, provides four routes for crypto companies to promote cryptocurrencies, including compliance with conditions of an exemption in the Financial Promotion Order.
This development underscores the evolving landscape of cryptocurrency regulation in the UK and highlights the importance of regulatory compliance. The UK's Financial Promotion regime aims to strike a balance between fostering growth in crypto assets and ensuring investor protection by setting guidelines for cryptocurrency businesses.
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