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 exchange initially 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 recently announced that Rebuildingsociety.com lacked the authorization
to approve crypto-related ads.
The regulator stated: “On 10 October 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
In a statement on its website, Binance stated that
while it will cease accepting new UK users 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 explore or
engage with 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 subsidiary, Binance
Markets Limited (BML), from registration with the FCA. The FCA initially
flagged the subsidiary in mid-2021, triggering alerts from financial market
watchdogs worldwide. The FCA subsequently imposed restrictions on Binance
Markets Limited, preventing the firm from engaging in regulated activities
within the UK.
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 exchange initially 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 recently announced that Rebuildingsociety.com lacked the authorization
to approve crypto-related ads.
The regulator stated: “On 10 October 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
In a statement on its website, Binance stated that
while it will cease accepting new UK users 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 explore or
engage with 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 subsidiary, Binance
Markets Limited (BML), from registration with the FCA. The FCA initially
flagged the subsidiary in mid-2021, triggering alerts from financial market
watchdogs worldwide. The FCA subsequently imposed restrictions on Binance
Markets Limited, preventing the firm from engaging in regulated activities
within the UK.
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- Source: https://www.financemagnates.com//cryptocurrency/binance-pauses-new-user-registrations-in-the-uk-to-meet-ad-regulations/
