Crypto exchange Binance announced earlier this week that it will stop accepting new UK users in order to comply with new regulations.
On Monday, cryptocurrency exchange Binance announced it will stop accepting new customers in the United Kingdom in order to remain compliant with the UK’s crypto regulation.
Binance Complies with UK Financial Promotions Regime
Binance announced the move after the UK’s Financial Promotions Regime for qualifying crypto assets took effect on October 8. Under the UK’s stricter regulation, unregulated overseas firms, such as Binance, may promote their business in the UK if they engage with a firm authorized by the Financial Conduct Authority (FCA).
The crypto exchange engaged the FCA-authorized firm, Rebuildingsociety.com (‘REBS’), to review and ensure its promotions align with the UK’s new regulatory compliance.
Binance, however, said the FCA imposed legally binding requirements on REBS on October 10, meaning REBS could no longer approve Binance’s financial promotions. REBS had to withdraw all existing approvals of financial promotions on behalf of all cryptoasset businesses.
The exchange said it is currently looking for a new approver authorized by the FCA.
The exchange explained to its users that from October 16, it will stop accepting new UK users. Existing UK customers will retain current services available but will not have access to any new products and services during the time they search for an FCA-authorized approver.
FCA Issues 146 Alerts on First Day of New Promotions Regime
Just one day after its new promotions regime took effect, the FCA announced it had already issued 146 alerts over non-compliance with regulations.
The financial authority urged consumers to check the “Warning List” it published on its website before making any crypto investments.
The FCA’s stricter promotions regime was announced in February.
According to the agency, there are four routes crypto companies can take to promote cryptocurrencies:
- “An authorized person communicates the promotion.
- An authorized person approves the promotion.
- A crypto firm registered under the Money Laundering Regulations (MLR) communicates the promotion.
- The promotion otherwise complies with the conditions of an exemption in the Financial Promotion Order.”
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