- Binance will not accept new U.K. users starting October 16th.
- The move aims to comply with FCA’s crypto marketing rules.
Binance has announced a decision to stop new users from the U.K. The restriction started on Monday, October 16th, 2023, at 5 PM U.K. time.
The move comes amid new crypto marketing rules, which took effect on October 8th. The rules require unregulated overseas firms to promote their crypto-asset offerings in the U.K. through entities authorized by the Financial Conduct Authority.
Although Binance engaged with FCA-authorised firm Rebuildingsociety.com, the regulator said the firm wasn’t approved for crypto ads. The exchange assured its users;
“We are working closely with the FCA to ensure that our users are not harmed by these developments and are looking to find another suitable FCA-authorized firm to approve our financial promotions as soon as possible.”
Binance’s current U.K. users will access the exchange’s services if they have performed their “Investor Declaration and Appropriateness Test.” The users will not access any new products and services from Binance during this period.
Tough Stance on Crypto and Crypto-Asset Firms
The development affirms U.K. grip on crypto assets and firms offering digital asset services. Last week, FCA stopped Rebuildingsociety.com from undertaking financial promotions for crypto asset firms.
High-profile collapses such as FTX have sparked concerns over how the firms protect investor funds. That has seen many countries toy with the idea of regulating the sector to create order and avert anarchy. Australia, one of the increasingly crypto-friendly nations, proposed a new licensing regime for exchanges. According to the proposals, crypto exchanges with more than AUD5 million must be licensed by the Australian Financial Services. The country expects the draft legislation to be ready by 2024.
