Key Insights
- Binance will stop accepting new users from the UK after October 16 due to regulatory restrictions imposed by the FCA.
- The FCA mandated legally binding requirements on Binance’s partner, REBS, prohibiting the promotion of Binance’s goods and services to UK users.
- Existing Binance users in the UK will not be affected.
Binance, one of the largest and most prominent crypto exchanges, is set to halt onboarding users from the United Kingdom starting from 5 p.m. local time on October 16.
This decision by Binance follows the imposition of strict and legally binding requirements on its partner, Rebuildingsociety.com Ltd (REBS), by the country’s regulatory body, the Financial Conduct Authority (FCA), on October 10.
Among the various stipulations outlined by the FCA, one notable restriction bars REBS from engaging in promotional activities that advertise Binance’s goods and services to UK users.
The exchange, in an official statement, acknowledged this development, saying,
Binance is currently looking for a new FCA authorized approver. However, there will be some temporary restrictions coming into effect on our Platform (i.e., www.binance.com/en-GB and the latest version of our Mobile App) during the period until Binance onboards with a new FCA authorized approver and has its financial promotions reapproved.
Read also! Bybit Temporarily Suspends UK Operations in Response to FCA’s New Rules
Existing Binance users in the UK will not be affected
Existing Binance users in the UK, fortunately, will remain unaffected by these changes. However, Binance clarified that “any new products and services will not be made available during this interim period.” This means that various offerings such as gift cards, Binance Academy, Binance Research, Binance Feed, and the Referral Bonus, which are accessible on the Binance international platform, will not be accessible on the UK platform.
Read also! Crypto Exchanges Binance and OKX Comply with UK Rules for Fair Promotions
This development can be traced back to the Financial Conduct Authority’s recent enforcement of a series of new regulations concerning crypto marketing. These rules mandate that crypto exchanges must market their products and services to UK consumers in a clear, fair, and transparent manner, along with providing understandable risk warnings. Notably, these regulations also allow FCA-registered entities to market products and services on behalf of overseas firms not registered with the FCA.
In an attempt to adapt to these regulations and continue providing its services to users in the UK, Binance had originally planned to use REBS to enable its UK-based users to access the exchange’s offerings via a localized domain. This approach was necessitated by the fact that Binance itself is not registered with the FCA.
The move by Binance to temporarily cease onboarding new users in the UK signifies the challenges faced by crypto exchanges in complying with evolving regulatory frameworks. It also highlights the broader issue of how various countries are grappling with the regulation of the rapidly growing cryptocurrency sector.
Read also! Australia plans to introduce crypto regulation by 2024
MarketsXplora will be closely monitoring Binance’s efforts to find a new FCA-approved partner and the eventual reactivation of its services to new UK users.
[…] The FCA underscored several “common issues” they have encountered in cryptocurrency promotions. This includes a recent episode where they blocked the chosen ad approver for unregistered firm Binance from endorsing any crypto-related communications. Consequently, Binance, the world’s largest cryptocurrency exchange, stopped accepting new clients in the country. […]