Key Takeaways -
- Binance temporarily halts new UK user registrations due to FCA restrictions on its promotional partner, Rebuilding Society.
- Existing UK users can continue using current services but won't have access to new features unless they meet specific conditions.
- Binance is actively seeking a new FCA-authorized partner to resume full services in the UK.
In a significant development, Binance, the global leader in crypto exchange, has put a temporary halt on new user registrations from the United Kingdom. This move comes right after the UK's Financial Conduct Authority (FCA) imposed restrictions on Rebuilding Society, the firm responsible for approving Binance's UK promotions.
What's in Store for Existing Users?
If you're already a Binance user in the UK, there's some good news and some bad news. The good news is that you'll continue to have access to current services. However, this comes with a condition. You must have completed the mandatory Investor Declaration and Appropriateness Test. Unfortunately, any new features or services will be off-limits during this period.
Binance's Search for a New Regulatory Partner
Binance isn't just sitting on its hands. The exchange is actively looking for a new partner that has the FCA's approval. Until they find this new partner, expect some limitations on the platform and mobile app if you're a UK user. Binance assures that it is working closely with the FCA to minimize any negative impacts on users.
The Binance-Rebuilding Society Partnership
The partnership between Binance and Rebuilding Society was short-lived. Announced on October 8, the FCA imposed restrictions just two days later, effectively ending the partnership. This means Rebuilding Society can no longer approve financial promotions as of October 11.
Binance's Commitment to Regulatory Alignment
When questioned about this regulatory hiccup, a spokesperson from Binance emphasized the company's strong commitment to compliance. They revealed that Binance had even shared their agreement with Rebuilding Society with the FCA a week before the new rules were activated.
Understanding the FCA's Updated Guidelines
The FCA's new rules for crypto asset promotions kicked in on October 8. Firms that are already registered with the FCA can now approve promotions for unregulated companies like Binance. But be warned, failure to adhere to these guidelines could result in severe penalties, including up to two years in prison or an unlimited fine.