- Binance has stopped accepting new users from the UK
- The company is looking for an FCA-approved marketing entity due to the FCA’s recent regulatory changes
- Binance previously used Rebuildingsociety.com, but the FCA added it to the list of firms prohibited from promoting crypto services in the UK
Binance has announced that it has had to stop accepting new users from the United Kingdom while it looks for an FCA-approved marketing entity. The decision to halt new UK registrations directly results from the Financial Conduct Authority’s (FCA) recent regulatory changes regarding the promotion of cryptocurrency products, which has seen Binance’s current provider effectively blacklisted by the regulator. Existing users can continue to use the exchange, albeit only with the products they currently use, after Binance began rerouting UK users to a new, compliant domain.
Binance’s Marketing Provider Falls Fould of FCA Rules
The FCA introduced new rules this month that necessitate cryptocurrency firms to register with it and have their marketing materials approved by an FCA-authorized entity. Additionally, exchanges must provide comprehensive risk warnings to customers regarding the potential hazards associated with cryptocurrency investments.
Binance had planned to do this through a third party, Rebuildingsociety.com, but the FCA recently added this firm to its list of entities prohibited from promoting crypto services in the country. Consequently, Binance is actively seeking a new FCA-authorized entity to oversee its financial promotions, ensuring compliance and facilitating the onboarding of customers.
Binance’s UK Struggles Continue
The issue is the latest to strike Binance in the UK, with the company believing it was making headway after its two British-serving entities, Binance Jersey and Binance UK, were shuttered and prevented from opening respectively. Users have also faced the sporadic suspension of pound sterling deposits and withdrawals in recent years.
Binance will be hoping it can secure the services of a regulated body and resume full UK operations, especially with the region looking to become a crypto hub in the coming years.
