October 16, 2023 – Binance, one of the world’s leading cryptocurrency exchanges, announced it will stop registering new users from the UK starting 5:00 PM London time today, following new regulatory guidelines in the country.
The decision is a direct consequence of the UK’s Financial Promotions Regime that became effective on October 8, 2023. The new rule mandates crypto businesses to have their financial promotions approved by a Financial Conduct Authority (FCA)-sanctioned firm. Binance had initially partnered with FCA-approved Rebuildingsociety.com Ltd (REBS) for this purpose. However, recent binding requirements imposed on REBS by the FCA have rendered it incapable of continuing its approval services, affecting its clients, including Binance.
As a result, while Binance seeks a new FCA-authorised firm to oversee its promotions, the exchange will impose certain restrictions on its platform. Existing UK-based clients who have passed the Investor Declaration and Appropriateness Test will retain access to current services but won’t be able to avail of new products or services during this period.
Binance has communicated its commitment to adhering to the FCA’s regulations and is actively engaging with the authority to ensure user interests are safeguarded during this transition. This move highlights the FCA’s rigorous stance on crypto promotion, indicating a strong focus on consumer protection in the volatile crypto market, with stringent penalties for non-compliance.
The regulatory environment in the UK continues to evolve, and firms operating in the cryptocurrency space are under increasing pressure to comply with these new rules designed to protect investors from the risks associated with crypto assets.
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