Cryptocurrency giant Binance will cease accepting new UK users effective at 5:00 PM London time on Monday, October 16, 2023 (16:00 UTC).
This move comes in the wake of the UK’s enforcement of the Financial Promotions Regime for qualifying crypto assets that came into effect on October 8, 2023, allowing unregulated overseas firms like Binance to promote their crypto businesses in the UK, provided they engage with a firm approved by the Financial Conduct Authority (FCA).
Binance had engaged with FCA-authorised Rebuildingsociety.com Ltd (REBS) to review and approve their UK financial promotions in compliance with the new regulations. However, the FCA imposed legally binding requirements on REBS on October 10, leading to REBS’ inability to approve financial promotions, thereby necessitating a withdrawal of existing approvals of financial promotions for crypto businesses, including Binance.
Binance wrote that it is presently searching for a new FCA-authorised approver, and in the interim, some restrictions will be applied on the Binance platform until they onboard a new approver and have their financial promotions reapproved.
Current UK Binance users will maintain access to existing services, provided they have completed their Investor Declaration and Appropriateness Test. However, any new products and services will not be available during this interim period. Binance has reassured that they are working diligently with the FCA to minimize any potential harm to its users by these developments and aims to find a suitable FCA-authorised firm to approve its financial promotions.
The UK’s Financial Conduct Authority had earlier issued its final warning to cryptocurrency firms about the upcoming financial promotions regime, emphasizing that all firms marketing crypto assets to UK consumers, including overseas firms, must comply with these regulations. The FCA’s stringent enforcement of this regulation, threatening violators with two years imprisonment, an unlimited fine, or both, underscores its commitment to reducing and preventing consumer harm from investing in high-risk crypto assets.
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