UK Crypto Exchanges Binance and OKX Comply with Updated Financial Promotions Regime
In order to survive increased regulatory pressure, cryptocurrency exchanges Binance and OKX are working to ensure their operations comply with the updated Financial Promotions (FinProm) Regime in the UK. Binance has introduced a new domain for UK retail users in partnership with an FCA-authorized lending firm. This domain only displays Binance products and services permitted in the UK, while those that fail to comply with regulations are not available. Similarly, OKX has made updates on its platform, including delisting tokens and issuing risk warnings. The Financial Conduct Authority (FCA) has introduced updates to the FinProm Regime to protect consumers and ensure fair markets.
143 Non-Authorized Firms Listed by FCA
The FCA has listed 143 crypto-related non-authorized firms, warning customers to avoid them. Among these firms are HBT (formerly Huobi) and KuCoin. The FCA’s Jayson Probin warned of possible criminal charges against non-approved entities and stated that the FCA will take robust action against those illegally promoting to UK consumers. HBT, KuCoin, and other exchanges must find ways to deal with ongoing regulatory scrutiny not only in the UK but also globally. Binance’s compliance efforts come as the exchange faces legal battles with the US Securities and Exchange Commission.
Hot Take: Crypto Exchanges Adapt to Regulatory Pressure
Cryptocurrency exchanges like Binance and OKX are taking steps to comply with updated regulations in the UK, particularly related to financial promotions. By partnering with authorized firms or making platform updates, these exchanges aim to ensure they are offering only authorized products and services in accordance with the law. The Financial Conduct Authority has warned consumers about non-authorized firms and is prepared to take action against illegal promotions. As regulatory pressure increases globally, exchanges will need to adapt and comply with regulations in order to survive and maintain their reputations. The crypto industry is evolving, and exchanges must navigate this changing landscape to remain successful.
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