Binance Adheres to U.K. Rules, Pauses New User Sign-Ups
Binance has announced that it will halt the acceptance of new users in line with the newly implemented cryptocurrency marketing regulations in the United Kingdom.
In a Monday blog post, the largest cryptocurrency exchange in the world said that the move is aimed at ensuring compliance with the country’s regulatory framework.
Effective from October 8, the new regulations allow cryptocurrency firms registered with the UK’s Financial Conduct Authority (FCA) to self-approve their advertisements.
Alternatively, these companies can seek the assistance of authorized entities to review and approve their ads on their behalf.
Prior to the implementation of these rules, Binance had partnered with Rebuildingsociety.com, a firm that was expected to approve its promotions and advertisements in the UK.
However, last week, the FCA declared that Rebuildingsociety.com was not authorized to grant approval for cryptocurrency-related ads.
Addressing the situation, Binance expressed its commitment to collaborating closely with the FCA to ensure the well-being of its users amidst these developments.
The exchange is actively seeking another FCA-authorized entity to approve its financial promotions as quickly as possible.
Existing Binance users from the UK who have completed the “Investor Declaration and Appropriateness Test” will retain access to the platform’s services.
However, they will not be able to access any new products or services during this temporary suspension period, according to the company’s statement.
“We are working closely with the FCA to ensure that our users are not harmed by these developments and are looking to find another suitable FCA authorised firm to approve our financial promotions as soon as possible,” the exchange wrote.
Crypto Platforms Seek to Abide by New UK Regulations
Last week, the FCA implemented some new rules pertaining to digital assets, which require crypto firms to register with the financial regulator and have their marketing materials approved by an FCA-authorized firm.
Key updates include exchanges providing clear warnings to customers about the risks associated with crypto investments.
Marketing materials must be fair, transparent, and not misleading. Additionally, a 24-hour cooling-off period for new customers is required.
Coinbase and Revolut informed their customers via email about the changes, which included the addition of “risk disclaimers” for crypto transactions. Users were also requested to update their mobile applications accordingly.
Binance, on the other hand, launched a dedicated webpage specifically for its UK customers.