In response to the renewed and increasingly strict directives from the UK’s Financial Conduct Authority (FCA) regarding cryptocurrency promotions, Binance, one of the world’s largest cryptocurrency exchange platforms, has made the bold decision to temporarily suspend the registration of new British customers. This initiative comes in the context of the regulatory hurdles faced by its British partner dedicated to promotions, Rebuilding Society.
Current customers unaffected, but new offerings temporarily halted
Current platform customers who have met the requirements of the ‘Investor Statement’ and ‘Adequacy Test’ will be able to continue their activities as normal. However, they will temporarily be deprived of access to new offers or innovative services. In the meantime, Binance is actively looking for a replacement, a new partner who would be in perfect compliance with FCA standards. While awaiting this transition, certain functionalities of the platform and Binance’s mobile application will be restricted for users based in the UK.
Short-lived agreement and new FCA regulations
It should be noted that the initially concluded agreement with Rebuilding Society on October 8th lasted only briefly, interrupted by swift regulatory action from the FCA just two days after its announcement. The renewed FCA guidelines, effective since October 8th, were put in place to better regulate and oversee financial promotions offered by cryptocurrency companies. Any company failing to comply with these strict rules risks significant penalties, as stipulated by the Financial Services and Markets Act 2000 in the UK.
In this ever-changing landscape, where regulation becomes a cornerstone, cryptocurrency companies as well as investors must exercise caution and quickly adapt to the changes.
