New Binance UK Users Will Not Be Accessed To The Exchange From October 16

Key Points:

• Binance will stop accepting new Binance UK users due to FCA regulations, effective October 16, 2023.
• The FCA withdrew approval for Binance’s financial promotions.
• Existing UK Binance users can continue current services, but new offerings will be temporarily unavailable.

Binance, a major cryptocurrency exchange, has announced that it will cease accepting new Bianance UK users from the United Kingdom starting Monday, October 16, 2023, at 5 p.m. UK time. The decision is in response to recent changes in cryptocurrency marketing regulations imposed by the Financial Conduct Authority (FCA).

Halt on New Binance UK Users’ Registration Amidst FCA Regulations

In a blog post, Binance revealed that these changes come as a result of the FCA’s “UK Financial Promotions Regime for qualifying cryptoassets came into effect on 8, 2023.” These new rules allow overseas firms, like Binance, to promote their crypto businesses in the UK, provided they engage with an FCA-authorized entity for financial promotion approval.

However, on October 10, the FCA imposed legally binding requirements on Binance’s approved entity, Rebuildingsociety.com Ltd (REBS). This meant that REBS could no longer approve financial promotions, and as of 5 p.m. on October 11, 2023, they were required to withdraw any existing approvals for cryptoasset businesses, including Binance.

Binance Seeks New Approval in Response to Marketing Rules

The exchange is actively seeking a new FCA-authorized entity to approve its financial promotions. During this transition period, existing Binance UK users who have completed the necessary investor declarations and suitability tests will continue to have access to their current services. However, no new products or services will be offered.

In their statement, Binance expressed their commitment to working closely with the FCA to ensure the welfare of their users amidst these developments, and they are actively pursuing a new FCA-authorized firm to facilitate financial promotion approvals as soon as possible.

As the regulatory landscape in the crypto industry evolves, Binance’s decision to halt new Binance UK users’ registration underscores the need for compliance with the ever-changing rules and regulations within the cryptocurrency sector. Existing users are encouraged to review Binance’s risk warnings and gain a better understanding of the specific cryptoassets they wish to invest in.

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