Binance Halts New User Onboarding in the UK
Binance, a leading cryptocurrency exchange, has temporarily suspended the onboarding of new users from the United Kingdom. This decision comes as Binance searches for a new partner authorized by the Financial Conduct Authority (FCA) to approve its cryptocurrency promotions. The FCA had previously restricted Binance’s local partner from approving such marketing materials.
Binance’s Search for an FCA-Authorized Partner
In an official blog post, Binance announced that it is actively working with the FCA to protect its users and find another suitable FCA-authorized firm to approve its financial promotions. Existing UK customers can continue using the platform, provided they have completed the necessary Investor Declaration and Appropriateness Test. However, new products and services will not be available during this period. Binance also stated that it would stop accepting new users from 5 p.m. UK time on Monday, Oct. 16.
FCA Imposes Restrictions on Binance’s UK Partner
This development follows the recent restrictions imposed by the FCA on Binance’s UK partner, Rebuildingsociety.com Limited (REBS), a peer-to-peer lending platform. The FCA instructed REBS to cease any ongoing promotions related to cryptocurrencies and inform its clients about the regulatory restrictions. Additionally, REBS was required to provide written confirmation of compliance with these requirements.
FCA’s Strict Regulations for Cryptocurrency
The FCA has maintained stringent regulations for cryptocurrency firms in the UK. According to updated rules, crypto companies must be registered with the FCA to approve their promotions. Unregistered firms like Binance need to engage FCA-authorized partners to gain approval for their crypto advertisements.
Hot Take: Binance Faces Regulatory Challenges in the UK
Binance’s decision to halt new user onboarding in the UK reflects the challenges it faces due to regulatory restrictions imposed by the FCA. The exchange is actively working to find an FCA-authorized partner to ensure compliance with the regulatory framework. As the FCA continues to enforce strict regulations on cryptocurrency firms, Binance’s search for a new partner highlights the importance of adhering to regulatory requirements in operating within the UK market.
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