Binance’s Response to New Regulations
Binance, the popular cryptocurrency exchange, has made an important announcement regarding its operations in the United Kingdom. Starting from Monday, October 16, 2023 at 5pm UK time, Binance will no longer be accepting new users from the UK.
New Financial Promotions Regime
The reason behind this decision is the implementation of the U.K. financial promotions regime for qualifying crypto assets, which came into effect on October 8. According to these new rules, unregulated overseas platforms like Binance can promote their crypto businesses in the UK by collaborating with FCA-authorized firms.
Issues with FCA-Authorized Firm
Binance initially engaged with an FCA-authorized firm called Rebuildingsociety.com Ltd (REBS) to review and approve their financial promotions. However, on October 10, the FCA imposed legal requirements on REBS that prevented them from approving financial promotions. As a result, REBS had to withdraw any existing approvals for cryptoasset businesses like Binance.
Search for a New Approver
In light of these developments, Binance is currently searching for a new FCA-authorized firm to review and approve its financial promotions in compliance with the new regulations. Until a new approver is onboarded and reapproval is obtained, temporary restrictions will be placed on Binance’s U.K. platform and its mobile app.
Hot Take: Binance Adapts to Regulatory Changes
Binance’s decision to halt accepting new users in the U.K. showcases its commitment to complying with regulatory changes set by the Financial Conduct Authority. By actively seeking an FCA-authorized approver, Binance aims to ensure that its financial promotions align with the new rules. This move demonstrates Binance’s dedication to operating within the legal framework and maintaining transparency in its operations. As the crypto industry continues to evolve, it is crucial for exchanges to adapt and cooperate with regulatory bodies to foster trust and legitimacy.
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