© Reuters.
Binance, a leading cryptocurrency exchange, has temporarily halted the registration of new UK users in response to recent changes in the Financial Promotions Regime for suitable crypto assets. The amendments, effective since October 8, 2023, require overseas entities like Binance to collaborate with a firm authorized by the UK Financial Conduct Authority (FCA) for promotional activities.
The regulatory tightening comes amidst concerns over the security of customer deposits and following notable collapses of several crypto firms in the past year. These regulations have gained worldwide attention and are a central topic of discussion at Benzinga’s Future of Digital Assets conference.
Initially, Binance had partnered with Rebuildingsociety.com Ltd (REBS), a peer-to-peer lending platform. However, on October 10, 2023, the FCA imposed legally binding requirements on REBS, preventing them from authorizing financial promotions. This move led REBS to cancel its financial promotion approvals for Binance and other crypto firms by October 11, 2023.
In response to these developments, Binance has implemented temporary restrictions on its platform, including its website and mobile app. Starting from Monday, Binance ceased onboarding new UK customers. However, existing users can retain their service access.
As of now, Binance is actively exploring options with other FCA-approved firms for promotional authorization. The pause on new UK user enrollments will continue until Binance secures a new partnership with an FCA-authorized entity.
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