Binance to Halt Onboarding New U.K. Users
- Binance used Rebuildingsociety.com Ltd. (REBS) to get approval for its crypto ads.
- The FCA warned REBS to withdraw approvals for crypto promotions.
- The FCA recently introduced new rules that require crypto companies to register with the regulator and receive approval for their crypto ads.
Cryptocurrency exchange has announced that it will stop onboarding new UK users as of 5 p.m. local time on Oct. 16. Binance also encouraged existing users to be well-informed before making investments in cryptocurrencies.
Binance noted that the UK’s Financial Conduct Authority’s decision to impose legally binding requirements on its UK partner Rebuildingsociety.com Ltd. (REBS) was behind its announcement. Binance used REBS to have its ads and promotions approved in the UK.
However, the FCA added REBS to the list of companies banned from promoting cryptocurrency services within the UK. The UK regulator warned REBS to “withdraw any existing approvals for crypto promotions.”
The financial watchdog wrote in a post that “the FCA can impose requirements on a firm in circumstances where it concludes that it is necessary to do so to advance one or more of the FCA’s operational objectives, which includes securing an appropriate degree of consumer protection.”
Reacting to the ban on new UK users, Binance wrote in a statement:
Binance is currently looking for a new FCA-authorized approver. However, there will be some temporary restrictions coming into effect on our platform (i.e., www.binance.com/en-GB and the latest version of our mobile app) during the period until Binance onboards with a new FCA authorized approver and has its financial promotions reapproved.
Last week, the FCA released new rules that require crypto firms to register with the regulator and also have their crypto ads approved by an FCA-authorized firm. The new rules also require crypto firms to warn clients of the possible risks of crypto investments.
Binance noted that existing British users will continue to access its services. However, the digital asset trading platform explained that “any new products and services will not be made available during this interim period.” UK customers are currently unable to access Binance services such as Binance Research, Referral Bonus, Binance Feed, Binance Academy, and gift cards.
Aside from the U.S., Binance has also faced struggles in the U.K. The crypto exchange suspended pound sterling deposits and withdrawals earlier this year and lost its partnership with Paysafe Payment Solutions, its European banking partner.
The trading platform has also faced troubles in France, the Netherlands, and Germany.
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