Binance Suspends Access for New UK Users
In a significant move, Binance, the world’s largest cryptocurrency exchange, has announced that it will be suspending access to its platform for new users in the United Kingdom. This decision comes after the termination of a partnership with a third-party firm responsible for approving communications on the exchange, as mandated by the UK’s financial watchdog.
UK Users Blocked
Effective from 5 p.m. London time on Monday, October 16, individuals in the UK who have not yet registered with Binance will no longer be able to create new accounts. This poses a challenge for the exchange as it seeks to regain access to one of the most significant cryptocurrency markets outside of the United States.
The regulatory changes that led to this move are part of an expansion of the UK’s financial promotions regime, which now covers crypto asset service providers regardless of their jurisdiction. Under these new rules, all crypto platforms must display clear risk warnings to UK-based consumers and meet stringent technical standards. Additionally, all communications must receive approval from an FCA-authorized firm. Non-compliance carries severe penalties.
Binance Seeks New Communications Approver
To comply with these requirements, Binance had enlisted the services of peer-to-peer lending platform Rebuildingsociety.com to approve its communications with UK customers. However, the FCA recently restricted Rebuildingsociety.com’s authorization to approve communications for crypto companies. Binance is now looking for another suitable FCA authorized firm to approve its financial promotions.
This latest setback adds to the growing regulatory scrutiny faced by Binance and its CEO on a global scale. The company is currently involved in legal disputes in the United States and Canada and is under investigation by the US Department of Justice. The Financial Conduct Authority has previously cautioned against using Binance’s services due to concerns over its ability to be effectively regulated.
Hot Take: Binance Faces Regulatory Challenges
Binance’s decision to suspend access for new UK users reflects the increasing pressure on cryptocurrency exchanges to adhere to stricter compliance standards. This move highlights the evolving regulatory landscape of the crypto industry.
As of the time of writing, the price of Binance Coin (BNB) stands at $219, reflecting a 1.3% increase over the past 24 hours and a 4.2% gain over the seven days.
Featured image from Shutterstock, chart from TradingView.com
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