Cryptocurrency exchange giant Binance announced its decision to stop accepting new UK users as of Monday, October 16, 2023, at 5 pm UK time. This decision comes as a response to the ever-evolving regulatory landscape surrounding digital assets and the Financial Conduct Authority’s (FCA) requirements.
The catalyst for Binance’s action can be traced back to October 10, 2023, when the FCA, the regulatory authority governing financial activities in the United Kingdom, imposed legally-binding requirements on REBS (Rebuildingsociety.com Ltd), a former partner of Binance. These requirements essentially stripped REBS of its ability to approve financial promotions, including those of cryptoasset businesses like Binance.
The move by the FCA was in response to the recently enacted UK Financial Promotions Regime for qualifying cryptoassets, which came into effect on October 8, 2023. These new rules allow unregulated overseas firms, such as Binance, to promote their cryptoasset businesses in the UK only by engaging with a firm authorized by the FCA.
As a result of these regulatory developments, Binance is now actively searching for a new FCA authorized entity that can review and approve its UK financial promotions in compliance with the new rules. This process is expected to be time-consuming and may lead to some temporary restrictions on the Binance platform.
For existing users in the UK, Binance will continue to ensure that all risk warnings are prominently displayed. The platform encourages users to take a few minutes to educate themselves on cryptocurrency risks. Users are also advised to check the “Info” tab for information on specific cryptoassets they might be interested in.
However, there are some restrictions that existing UK users should be aware of during this interim period. While existing UK users will retain access to the current services provided, new products and services will not be available until Binance successfully onboards a new FCA authorized approver and has its financial promotions reapproved.
Source: https://azcoinnews.com/binance-halts-new-uk-user-registrations-amid-regulatory-changes.html