On Monday, cryptocurrency exchange Binance released an important update regarding its operations in the United Kingdom. The statement reads:
“As of Monday, October 16, 2023, at 5 pm UK time, Binance will cease to accept new users from the UK.”
Binance’s decision is in response to the implementation of the UK’s financial promotions regulations for qualifying crypto assets, which came into effect on October 8. These regulations enable unregulated overseas platforms, such as Binance, to engage with FCA-authorized firms to promote their crypto-related activities in the UK.
In their official announcement, Binance explained that they had engaged the services of an FCA-authorized firm, Rebuildingsociety.com Ltd (REBS), to review and endorse their financial promotions in adherence to the new regulations. However, Binance stated that on October 10, the FCA imposed “legally-binding requirements” on REBS, rendering it unable to continue approving financial promotions. Furthermore, as of October 11 at 5 pm, REBS was obligated to retract any prior approvals of financial promotions on behalf of cryptoasset businesses, including Binance.
Binance underscored:
“At this moment, Binance is actively seeking a new FCA-authorized approver.”
The cryptocurrency exchange clarified that it would temporarily impose restrictions on its UK platform and the latest version of its mobile app. These restrictions will remain in place until Binance successfully identifies a new FCA-authorized approver and regains approval for its financial promotions.
