In a significant development for the cryptocurrency industry, Binance, a leading crypto exchange, has discontinued new user registrations in the United Kingdom effective from Monday. This decision comes as a direct response to the Financial Conduct Authority's (FCA) restrictions placed on Rebuilding Society, the firm responsible for approving Binance's UK promotions.
The FCA's actions against Rebuilding Society led to the termination of its contracts with several firms, including Binance. Consequently, Binance is now actively seeking a new FCA-authorized partner to help navigate these regulatory changes.
The restrictions imposed by the FCA have critically impacted Binance's operations in the UK, blocking the initiation of new crypto promotions. In response, Binance has temporarily restricted its platform and mobile app for UK users while it works towards compliance with the new regulations.
Despite these changes, existing customers who have passed the "Investor Declaration" and "Appropriateness Test" will maintain their current service levels. However, Binance has suspended the roll-out of new products or services in adherence to FCA directives during this interim period.
These recent developments are part of broader regulatory changes within the UK. The country has tightened regulations on crypto asset transfers under the Financial Action Task Force's "Travel Rule" in an effort to curb money laundering via cryptocurrencies. Additionally, a bill passed in June recognized cryptocurrency as a "regulated financial activity", which although it enhances the industry's potential, also presents challenges for unregulated businesses.
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