Binance has announced a change in its operations for UK users following regulatory adjustments from the UK Financial Promotions Regime.
According to the crypto exchange, the regulators enacted a rule for qualifying cryptoassets, which came into effect on October 8, 2023.
The new rules created will affect how Binance serves its UK users from henceforth. One of the new requirements as stated by Binance is that while unregulated overseas cryptocurrency firms, such as Binance, can promote their services in the UK, it must be done in partnership with a firm authorized by the Financial Conduct Authority (FCA).
In agreement with this, Binance chose Rebuildingsociety.com Ltd (REBS) as its preferred promotion partner. This gave REBs the authority to review and approve all promotions from Binance in the UK.
However, Binance reports that on October 10, the FCA stopped REBS from approving any promotion created by the crypto firm. A day later, REBS was asked to withdraw all approvals it had made for crypto businesses.
Consequently, Binance will need to reach an agreement with a new FCA-authorized approver. This would also mean that there will be temporary restrictions on Binance’s Platform, including its website (www.binance.com/en-GB) and the latest version of its mobile app pending a new agreement.
Binance also noted that from 5 pm UK time on Monday, October 16, 2023, it will not accept new users from the UK.
While existing users will continue using their services after completion of the Investor Declaration and Appropriateness Test.
During this interim period, new products and services will not be made available to UK users. Binance affirmed that it is actively working with the FCA to minimize the impact of these changes on its users and is actively seeking another FCA-authorized firm to approve its financial promotions as soon as possible.
In view of regulating the industry, the UK government in September warned crypto firms on their marketing tactics towards UK consumers.
It added that all crypto first will be required to adjust to the new rules created and non-compliance could result in severe penalties.