Prominent global cryptocurrency exchanges, including Binance and OKX, have declared their commitment to adhere to the United Kingdom’s new Financial Promotions (FinProm) Regime, recently implemented by the Financial Conduct Authority (FCA) on October 8. The aim of this regulatory initiative is to ensure fair, transparent, and compliant promotion of cryptocurrency products and services.
On October 6, Binance announced the launch of a new domain for its UK users and a partnership with the local peer-to-peer lending platform Rebuildingsociety. In line with compliance updates, Binance’s retail users in the UK will be redirected to a localized domain starting from October 8. This domain will exclusively display Binance’s products and services that are permitted under UK regulations. Such offerings include spot and margin trading, Binance Pay, a nonfungible token (NFT) marketplace, loans, and more. However, in adherence to the new FCA rules, Binance will cease offering products such as gift cards, referral bonuses, and research services.
It’s important to note that these changes will solely impact retail users in the UK, while certain institutional and professional investors will be exempt under the new FinProm rules.
Similarly, OKX issued a statement on October 6 regarding its commitment to FinProm compliance. The exchange has reduced its token offering to approximately 40 assets and introduced prominent risk warnings on its platform. One such warning prominently displayed on OKX’s main page advises investors not to invest unless they are prepared to accept the risk of losing their entire investment. Additionally, OKX has launched a dedicated U.K. account on social media platform X (formerly Twitter) to provide information about products and services compliant with the new UK regulations.
MoonPay, a crypto payment service, has also been working to comply with the new FinProm rules. According to Matt Sullivan, Deputy General Counsel at MoonPay, ensuring compliance is particularly challenging for global businesses. Sullivan stated that compliance necessitates localized product updates, the implementation of new processes and policies, and education throughout the organization. He noted that there might be an initial adjustment period, and interpretations of certain rules could evolve over time.
However, some crypto firms have faced difficulties in complying with the new promotion rules in the UK. The FCA issued statements on October 8, indicating that major crypto exchanges like KuCoin and HTX (formerly Huobi) may have been promoting their services without authorization. These firms were among the 143 entities listed as “non-authorized firms” not permitted to operate in the UK, according to the FCA’s warning list.
