Major global cryptocurrency exchanges, including Binance, are actively working to comply with the UK’s new Financial Promotions (FinProm) Regime. This is a significant move towards ensuring fair and transparent promotions in the crypto space.
Binance Adopts Changes for UK Users
Binance, a leading player in the crypto exchange arena, has taken proactive steps to adhere to the new regulations. On October 6, Binance announced the launch of a new domain specifically for its U.K. user base. Collaborating with the local peer-to-peer lending platform Rebuildingsociety, Binance is set to redirect its U.K. retail users to this localized domain from October 8.
This move aims to showcase only those Binance products and services that align with U.K. regulations. These include spot and margin trading, Binance Pay, NFT marketplace, loans, and more.
However, in compliance with the Financial Conduct Authority’s (FCA) updated rules, certain products will no longer be offered by Binance to its U.K. retail users. These products include gift cards, referral bonuses, academy, and research. It’s important to note that these changes are specific to retail users in the U.K. Also,it will not impact exempt users, such as certain institutional and professional investors.
OKX Adopts Measures for Compliance
Following suit, OKX issued a statement on October 6 regarding its efforts to comply with the FinProm rules. OKX has streamlined its token offerings to approximately 40 assets and incorporated prominent risk warnings on its interface. Positioned at the top of the OKX main page, the warnings caution investors about the high-risk nature of crypto investments, emphasizing the potential loss of invested capital.
OKX has also established a dedicated U.K. account on social media platform X (formerly Twitter). This is to adequately communicate compliant products and services.
MoonPay’s Compliance Journey
MoonPay, a crypto payment service, is navigating the challenges of adhering to the new FinProm rules. Matt Sullivan, Deputy General Counsel at MoonPay, acknowledges the complexities associated with ensuring global compliance.
Further, he highlights the need for localized product updates, the implementation of new processes and policies, and widespread education within the company to meet the regulatory requirements. Sullivan notes that the initial phase might involve a ‘settling in’ period, with evolving perspectives on the application of certain rules over time.
FCA Alerts: KuCoin and HTX Unauthorized in the UK
While major players like Binance, OKX, and MoonPay actively strive for compliance, the Financial Conduct Authority (FCA) has raised concerns about other crypto exchanges. On October 8, the FCA identified 143 entities, including well-known exchanges like KuCoin and HTX (formerly Huobi), as “non-authorized firms” prohibited from operating in the United Kingdom.
The warning list cautions users to avoid dealings with these entities. It further signals potential challenges faced by some crypto firms in meeting the new promotion rules.
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