The FCA’s recent regulation of cryptocurrencies in the UK has sparked strong reactions. Binance, the crypto exchange juggernaut, found itself trapped there, forced to temporarily put a brake on new registrations.
Binance UK puts pause on welcoming new UK users
The news broke this Monday: Binance UK will no longer take into account registrations from new British users. The move follows the FCA banning its partner company Rebuilding Society from approving crypto adverts.
Pending a new approver authorized by the FCA, Binance UK is obliged to limit its services in the United Kingdom.
If the ban is on new users, what about current customers? The platform has assured that existing services will remain available. However, access to new products or services will be restricted to them, at least for the moment.
Despite this tense context, Binance has underlines that he worked closely with the FCA. Furthermore, this authority sanctioned Rebuilding Society, forcing it to withdraw its validations for financial promotions in crypto.
Impacts and regulatory context
Binance’s situation does not occur in an isolated context. Since the start of the month, the FCA has strengthened its regulations relating to the promotion of cryptocurrencies. The entity had also issued numerous warnings before this implementation.
Binance is not the only one in the FCA’s sights. With the new regulations, more than 140 companies have been identified by the British regulator. The main objective is to effectively combat illegal promotions related to cryptocurrencies in the United Kingdom.
The incident with Binance simply reveals the tip of the iceberg of an increasingly strict UK regulatory environment. At the same time, Binance faces regulatory challenges in several jurisdictions and must refute allegations implicating its CEO in the collapse of FTX.
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