Binance, a leading cryptocurrency exchange, has taken swift action by suspending new user registrations in the UK following recent restrictions imposed by the Financial Conduct Authority (FCA) on its UK promotions partner, Rebuilding Society.
Binance’s Immediate Response
In response to the FCA’s stringent measures, which were implemented last week, Binance has halted the onboarding of new users in the UK. The FCA’s restrictions have a direct impact on Binance’s operational capacity in the UK market, particularly regarding the launch of new crypto promotions. This move underscores Binance’s commitment to adhering to regulatory standards for user protection.
To navigate the evolving regulatory landscape, Binance is actively seeking a new partner authorized by the FCA. However, this unforeseen development has led to temporary platform and mobile app restrictions for UK-based users. Binance remains in close contact with the FCA, emphasizing its dedication to protecting user interests throughout these regulatory changes.
Continuity for Existing Users
Existing Binance users in the UK who have already completed the necessary “Investor Declaration” and “Appropriateness Test” to meet regulatory requirements will continue to have access to their current service levels.
However, Binance has announced a temporary hold on the introduction of new products or services during this interim period, in line with FCA directives.
Binance is actively advocating for informed investment practices, urging users to thoroughly explore the ‘info’ sections before engaging in specific crypto assets. This proactive approach highlights the exchange’s commitment to transparency and safeguarding the interests of its investors.
Background on FCA’s Mandates
The situation is rooted in Binance’s brief collaboration with Rebuilding Society, a peer-to-peer lending firm. The FCA imposed legal constraints on Rebuilding Society shortly after the partnership announcement. These restrictions, effective from October 11, require the withdrawal of previously approved financial promotions, directly impacting Binance’s operations in the UK.
In response to inquiries, a Binance representative has emphasized the company’s substantial efforts, all to align with the UK’s Financial Promotions Regime. Notably, the FCA’s actions against various firms did not encompass Binance, highlighting the exchange’s commitment to compliance strategies.
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