Binance to Halt New UK Registrations under FCA Regulatory Pressure
Summary:
Binance, the cryptocurrency exchange, will cease accepting new UK users from October 16, following the Financial Conduct Authority's mandate to its partner, Rebuildingsociety.com Ltd. Although existing UK customers will maintain their current services, no new offerings will be introduced during the transition period. The decision comes as part of the FCA's newly imposed crypto marketing rules that require transparency and risk awareness in promoting services.
In an announcement, Binance, the cryptocurrency exchange, has shared that as of 5 p.m. on October 16, it will no longer accommodate new users from the UK. The decision was necessitated by the UK Financial Conduct Authority's (FCA) legal mandate issued to its affiliate, Rebuildingsociety.com Ltd (REBS) on October 10. Among other restrictions, REBS was barred from advertising or promoting Binance's offerings.
Binance stated in its communiqué, "We are presently in search of a new FCA accredited approver. Until we secure one and get our financial deals approved again, our platform (i.e., https:/www.binance.com/en-GB, and the most recent mobile app version) will experience some limitations."
Existing Binance customers in the UK will continue to enjoy their present services. Nonetheless, the exchange has made clear that "no new offerings will be introduced during this transition period." Several features such as gift cards, Binance Academy, Binance Research, Binance Feed, and Referral Bonus that are offered on Binance's international platform, are currently unavailable on the UK platform.
Cointelegraph had earlier reported that the FCA is implementing a set of new rules regarding cryptocurrency promotion. These demand that exchanges must engage UK consumers transparently, honestly, and must also highlight risks they understand. The ruling also permitted FCA-registered firms to advertise products and services representing overseas companies not enlisted with the FCA. Binance intended to leverage REBS to enable its UK patrons to access its services through a localised domain because it isn't registered with the FCA.
In related news, Binance clarified allegations regarding SBF's reported bribe in China along with a frozen account.
Published At
10/16/2023 4:57:20 PM
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