Rebuildingsociety as a regulated entity in the UK has been placed on restrictions by the Financial Conduct Authority. The peer-to-peer platform has an existing compliance partnership with the crypto exchange Binance.
According to the recently published guidelines for firms, the FCA made it clear that Rebuildingsociety cannot endorse any financial promotion for a Qualifying Cryptoasset to be communicated by an unauthorized individual. Hence, they must withdraw any previously approved Financial Promotions that include a Qualifying Cryptoasset. Consequently, it appears that Binance might not have a U.K. partner that meets the regulator’s marketing requirements.
Before the FCA’s announcement, Binance established a partnership with Rebuildingsociety. This allowed Binance’s U.K. users to access a localized domain, since Binance itself is not registered with the FCA yet.
The regulator has issued a warning to the firm, stating that it must adhere to the guidelines by 5 p.m. on Wednesday, October 11th. The FCA has also listed additional rules that the firm must follow regarding Financial Promotions containing a Qualifying Cryptoasset for communication by an unauthorized person before the mentioned deadline. This includes the requirement for the firm to withdraw any ads or similar promotions that may offer approval of the content of such Financial Promotions.
In addition, Rebuildingsociety is required to provide written confirmation to their designated contact at the Authority, indicating that they have taken all necessary steps to comply with the requirements, no later than 5 p.m. on October 13th, 2023.
The recently enforced marketing regime by the regulator now requires crypto companies to ensure their advertisements are “clear, fair, and not misleading.” Failure to comply could result in criminal charges. In line with the FCA regulatory framework, crypto firms such as OKX and MoonPay have already expressed their intention to comply. However, it remains uncertain whether Binance will follow suit.
Rebuildingsociety is a regulated entity based in the UK that received authorization in 2017. It currently operates under two trading names: rebuildingsociety.com and rebuildingsociety.com Ltd.
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