Binance has declared that it is ceasing to register new customers from the United Kingdom. This decision aligns with the cryptocurrency regulations recently implemented by the UK’s Financial Conduct Authority (FCA). The company further noted that it is actively seeking a firm with FCA authorization to scrutinize and sanction its financial promotional activities in the U.K., as stipulated by these regulatory changes.
Binance Ceases New U.K. User Registrations
On Monday, Binance provided an updated status for its operations within the United Kingdom. The company communicated:
Effective from 5 p.m. UK time on Monday, October 16, 2023, Binance will discontinue the registration of new U.K.-based users.
The firm elaborated that new regulations governing financial promotions for qualifying crypto assets came into force in the U.K. on October 8. These regulations permit platforms that operate internationally but are not regulated within the U.K., such as Binance, to market their cryptocurrency services in the region by collaborating with entities authorized by the FCA.
Binance disclosed its engagement with the FCA-authorized entity Rebuildingsociety.com Ltd (REBS) to review and greenlight its financial promotional activities in the U.K., in line with the newly imposed rules. However, subsequent to this engagement, the FCA imposed “binding legal obligations” on REBS on October 10, thereby disabling REBS’s capacity to endorse financial promotions. Consequently, effective from 5 p.m. on October 11, REBS was mandated to revoke any extant approvals for financial promotional activities for any cryptoasset businesses, Binance included.
The company accentuated:
Binance is in the process of identifying a new entity authorized by the FCA for approval purposes.
The crypto exchange elaborated that interim constraints will be applied to its U.K. operations as well as the most recent iteration of its mobile application. These provisional measures will remain effective until Binance is able to partner with a new entity that has FCA authorization and subsequently obtains renewed approval for its financial promotional endeavors.
Your thoughts on Binance’s decision to halt new customer registrations in the U.K. are welcome in the comments section below.
Frequently Asked Questions (FAQs) about Binance UK regulations
What prompted Binance to stop accepting new users in the U.K.?
Binance has ceased new user registrations in the United Kingdom to comply with recent cryptocurrency regulations issued by the Financial Conduct Authority (FCA).
What are the new regulations from the Financial Conduct Authority?
The FCA introduced new rules governing financial promotions for qualifying crypto assets. These rules permit internationally-operating, unregulated platforms like Binance to promote their services in the U.K. through collaboration with FCA-authorized firms.
Binance initially collaborated with Rebuildingsociety.com Ltd (REBS), an FCA-authorized entity, to review and approve its financial promotional activities in the United Kingdom.
Why did Binance’s initial collaboration with REBS not work out?
On October 10, the FCA imposed binding legal obligations on REBS, making it ineligible to continue approving financial promotions. Consequently, REBS had to withdraw any existing approvals for financial promotions on behalf of any cryptoasset businesses, including Binance.
What steps is Binance taking following this development?
Binance is actively searching for a new entity that is authorized by the FCA to approve its financial promotional activities. Until such a partnership is established and approval is gained, Binance will have temporary operational constraints in the U.K.
What impact will this have on Binance’s U.K. operations and mobile app?
Interim restrictions will be applied to Binance’s operations in the U.K. and the most recent version of its mobile app. These temporary measures will remain until Binance secures a new FCA-authorized entity for approving its financial promotions.
Is the cessation of new U.K. user registrations permanent?
No, the cessation is temporary and will last until Binance successfully collaborates with a new FCA-authorized entity and receives reapproval for its financial promotions in the U.K.
More about Binance UK regulations
- Financial Conduct Authority Cryptoasset Regulations
- Binance Official Announcement on UK Operations
- Overview of FCA Authorized Firms
- Recent Changes in UK Crypto Regulations
- Rebuildingsociety.com Ltd’s Status with the FCA