Binance and OKX Comply with New Financial Promotion Regulations in the UK
Major cryptocurrency exchanges Binance and OKX have announced their efforts to comply with the new Financial Promotions (FinProm) Regime in the United Kingdom. The Financial Conduct Authority (FCA) implemented these regulations on October 8 to ensure fair and transparent crypto promotions.
Binance revealed that it has launched a new domain for its UK users and partnered with Rebuildingsociety, a local peer-to-peer lending platform. Retail users in the UK will be redirected to this localized domain starting from October 8, where they can access compliant Binance products and services such as spot and margin trading, Binance Pay, NFT marketplace, and loans. However, certain products like gift cards, referral bonuses, academy, and research will no longer be available due to compliance with FCA rules.
OKX has also taken steps to comply with FinProm regulations. The exchange has reduced its token offering to around 40 assets and added eye-catching risk warnings on its interface. It has also created a dedicated UK account on Twitter to mention compliant products and services.
MoonPay Faces Challenges in Compliance
Crypto payment service MoonPay is working towards compliance with the new FinProm rules. According to Matt Sullivan, the deputy general counsel of MoonPay, one of the biggest challenges is ensuring compliance while operating globally. This requires localized updates, new processes and policies, as well as company-wide education. Sullivan acknowledges that there may be a period of adjustment and that interpretations of certain rules may evolve over time.
Struggles for Some Crypto Firms
Some crypto firms have faced difficulties in complying with the new promotion rules in the UK. The FCA recently stated that exchanges like KuCoin and HTX (formerly Huobi) may have been promoting their services without permission. These firms, along with 141 others, were listed as “non-authorized firms” that are not allowed to operate in the UK.
Hot Take: The Importance of Regulatory Compliance
Complying with financial regulations is crucial for cryptocurrency exchanges and other industry players. The new FinProm regulations in the UK aim to protect consumers by ensuring fair and transparent promotions. Exchanges like Binance and OKX have taken steps to meet these requirements, such as launching localized domains and reducing offerings. However, challenges arise when operating globally, as seen with MoonPay. It is important for all crypto firms to understand and adhere to regulatory frameworks to maintain trust and credibility in the industry.
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