Binance and OKX Strive to Comply With New UK Crypto Promotion Regulations
Summary:
Top cryptocurrency exchanges, Binance and OKX, are making strides to comply with the new Financial Promotions rules of the UK. Binance has created a UK-specific domain that aligns with regulatory guidelines, while OKX has reduced its token offerings and included explicit risk warnings on its site. However, some platforms like KuCoin and HTX allegedly exposed their services without proper authorization, making them among the 143 firms listed as non-authorized by the Financial Conduct Authority. The listing also includes major exchanges like HTX and KuCoin.
Prominent global crypto exchanges, Binance and OKX, say they're striving to align with the recent financial promotion regulations in the United Kingdom. The Financial Conduct Authority (FCA) of the U.K. implemented the Financial Promotions (FinProm) Regime for cryptocurrency enterprises on Oct. 8, aimed at delivering crypto promotions that are transparent, fair, and clean. Binance declared, on Oct. 6, its launch of a U.K.-specific domain while also partnering with Rebuildingsociety, a local peer-to-peer lending platform. Starting Oct. 8, Binance's U.K. retail users will be directed to a region-specific domain, featuring only the Binance products and services that comply with U.K. laws. However, due to the new FCA regulations, Binance will no longer offer services like gift cards, referral bonuses, academy and research, and the like. The regulations only affect retail users in the U.K., exempting certain professional and institutional investors. In terms of FinProm compliance, OKX issued a statement of its own on Oct. 6. It's reduced its token offerings to about 40 assets and now carries conspicuous risk warnings. One notable warning, positioned at the top of the main OKX page, directs investors to familiarize themselves with the risks of crypto investment. Additionally, OKX has debuted a dedicated U.K. account on X (formerly Twitter). They've committed to advertising only the compliant products and services on this platform. Crypto payment service MoonPay is yet another company aligning with the FinProm rules. Matt Sullivan, deputy general counsel at MoonPay, agreed that one of the significant challenges of compliance is aligning with U.K. requirements while operating internationally. Meanwhile, some crypto firms seem to be struggling with the new promo rules, the FCA noted on Oct. 8. Crypto exchanges like KuCoin and HTX (formerly Huobi) might have been advertising their services without proper authorization, and were among the 143 entities now considered non-authorized. This group, also comprised of major exchanges like HTX and KuCoin, has now been added to the warning list.
Published At
10/9/2023 8:38:02 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.