The UK Financial Conduct Authority (FCA) has imposed strict restrictions on Rebuilding Society, the partner chosen by Binance for compliance with financial promotions in the UK. This intervention comes just after Binance’s recent announcement of its partnership with the Leeds-based peer-to-peer lender to meet the FCA’s new promotional requirements.
The company must not approve the content of a financial promotion of an eligible crypto-asset for communication by an unauthorized person.
This partnership seemed promising when, just last Saturday, Binance shed light on this collaboration in a blog post. The post confidently highlighted the ‘FCA authorization and approval’ of Rebuilding Society. Additionally, as recently as August, Rebuilding Society unveiled its brand new service for approving financial promotions for crypto assets, stating its willingness to assist crypto companies in this area.
But the tides quickly turned for Rebuilding Society. The FCA decree clearly dictated a halt to the approval of any financial promotional content for a crypto asset qualified by an unauthorized entity. The company has been given a strict deadline and has until Wednesday to revoke all previously granted approvals to unauthorized entities. Furthermore, the FCA requires Rebuilding Society to notify its clientele, especially those who use its third-party financial promotions services, that approvals from unauthorized entities are strictly prohibited.