UK Crypto Exchanges Update Apps to Comply with FCA Rules
Coinbase, Revolut, and Binance have made changes to their mobile and web applications in order to adhere to the new marketing rules set by the UK Financial Conduct Authority (FCA). These rules came into effect on October 8. Both Coinbase and Revolut sent emails to their customers informing them of the updates, which included additional risk disclaimers for crypto transactions. They also requested that users update their mobile applications. Binance launched a dedicated webpage for its UK customers and resumed operations on its mobile app after temporarily halting them in order to comply with the new regulations.
Komainu Receives License from FCA
Komainu, a digital asset custody firm backed by Nomura, CoinShares, and Ledger, obtained a license to operate in the UK on October 6. The firm provides custodial services to exchanges, financial institutions, and asset managers.
Some Exchanges Suspend Operations
ByBit and Luno have decided to suspend operations in response to the new FCA rules. PayPal has also temporarily paused crypto purchases for British users as it works on making its app compliant with the updated regulations.
FCA Alerts 146 Crypto Firms
The FCA has issued alerts to 146 crypto firms operating in the UK, stating that they are not authorized or registered by the regulatory body. The FCA expects these firms to contribute to the protection of UK consumers by avoiding illegal promotions.
New FCA Rules Explained
The FCA introduced new rules earlier this year that require crypto firms to register with the regulator and have their marketing approved by an FCA-authorized firm. The updates also mandate that exchanges provide fair warnings to customers about the risks associated with crypto investments. Marketing material must be clear, fair, and not misleading, and a 24-hour cooling-off period for new customers is required. While the deadline for implementing certain technically challenging features has been extended until January 2024, firms must adhere to the core rules from October 8. Non-compliance can result in criminal charges and penalties.
Hot Take: UK Crypto Exchanges Adapt to New FCA Rules
UK crypto exchanges have taken steps to comply with the new marketing rules set by the FCA. Coinbase, Revolut, and Binance have made updates to their mobile and web applications, while Komainu has obtained a license to operate in the region. However, some exchanges like ByBit and Luno have chosen to suspend operations. The FCA has issued alerts to several crypto firms operating in the UK, emphasizing the need for compliance to protect consumers. These new rules require exchanges to register with the FCA and provide fair warnings about the risks of crypto investments. Failure to comply can lead to criminal charges and penalties.
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