Major cryptocurrency exchange Binance has stopped onboarding new users from the United Kingdom, pending when the firm can find a new FCA-authorized partner to approve its cryptocurrency promotions.
The UK financial regulator restricted Binance’s previous local partner from approving crypto marketing materials.
Binance Currently Unable to Promote Crypto to UK Customers
Binance said it will place temporary restrictions on its platform for users in the United Kingdom as it is searching for a new local partner authorized by the Financial Conduct Authority (FCA) to approve its crypto adverts, as stated in a blog post on Oct. 16, 2023.
“We are working closely with the FCA to ensure that our users are not harmed by these developments and are looking to find another suitable FCA-authorized firm to approve our financial promotions as soon as possible.”
While existing UK customers can still use current services, on the condition that they have completed their “Investor Declaration and Appropriateness Test,” new products and services will not be available to them during this period. Also, Binance said it would stop accepting new users starting from 5 p.m. UK time on Monday, Oct. 16.
The latest development comes shortly after the FCA restricted Binance’s UK partner, peer-to-peer lending platform Rebuildingsociety.com Limited (REBS), from approving crypto-related financial promotions.
The FCA gave Rebuildingsociety.com until 5 p.m. UK time on Oct. 11 to stop any existing promotions and inform clients about the regulator’s restrictions while also instructing the company to present a written confirmation to the regulator by Oct. 13 that it has complied with the requirements.
FCA Continues to Maintain Strict Crypto Regulations
Binance previously announced its partnership with Rebuildingsociety.com Limited along with the launch of a new platform for its users in the UK in a blog post on Oct. 8, both in compliance with the FCA’s updated financial promotions regime to include cryptocurrency marketing.
Based on the updated FCA rules, crypto firms must be registered with the regulatory watchdog to approve their promotions. Meanwhile, unregistered crypto companies like Binance will have to use FCA-authorized firms to get approval for their crypto ads.
However, the partnership lasted just two days after the FCA imposed restrictions on REBS on Oct. 10. A Binance spokesperson said the exchange shared with the UK regulator its partnership agreement with REBS one week before the rules came into effect, adding that the company “invested an enormous amount of time and resources” to ensure compliance.
As previously reported by CryptoPotato, the FCA added 145 crypto businesses to its expanded list of unauthorized firms, following the new rules. Some prominent platforms, such as Kucoin and HTX, are featured in the list.