FCA Now Curbs Binance UK Partner Amid Compliance Concerns

Key Points:

• The FCA restricts Binance UK partner Rebuilding Society from approving crypto advertisements.
• The exchange had recently partnered with Rebuilding Society to navigate the new rules, as crypto firms must register with the FCA to approve their own promotions.
• Rebuilding Society has until Wednesday to withdraw previous approvals for financial promotions to unauthorized entities.

The Financial Conduct Authority (FCA) has imposed restrictions on Binance UK partner Rebuilding Society regarding financial promotion compliance, the news was first reported by The Block.

FCA Clamps Down on Binance UK Partner Over Crypto Ads

The FCA’s intervention, announced on Tuesday, prohibits Rebuilding Society from approving cryptocurrency advertisements, potentially impacting Binance’s efforts to comply with new marketing regulations.

Under the FCA’s OIREQ requirement, Rebuilding Society is barred from approving the content of financial promotions related to qualifying crypto assets for unauthorized individuals or entities. This move comes after Binance recently partnered with Rebuilding Society, just before the implementation of stricter crypto promotion rules over the weekend.

The new regulations require crypto firms to register with the FCA to gain approval for their own promotions and advertisements. However, they also allow unregistered crypto companies to have their ads approved by authorized firms. Binance, which is not registered with the FCA, sought to comply with the new regime by partnering with Rebuilding Society for approval of its communications.

Binance Faces Setback as FCA Restricts UK Partner’s Role

The FCA has given Rebuilding Society until 5 p.m. BST on Wednesday to withdraw any previous approvals for financial promotions granted to unauthorized entities.

Additionally, Binance UK partner must inform its clients using its third-party financial promotions service that it cannot approve content from unauthorized sources and must withdraw any advertisements offering its services to approve financial promotions.

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