The UK Financial Conduct Authority (FCA) has taken an important step regarding the Binance exchange. The move attracts attention. Accordingly, the development concerns Rebuilding Society, Binance’s partner responsible for financial promotion compliance in the United Kingdom. The FCA intervened to impose restrictions. This move by the UK’s financial regulator is attracting attention. Accordingly, the move came after Binance’s move in the United Kingdom. Binance announced its partnership with the Rebuilding Society to ensure financial promotion compliance.
FCA’s restrictive measures regarding Binance partner
The FCA’s intervention places significant restrictions on Binance partner Rebuilding Society. Accordingly, it prevents it from approving financial promotions on behalf of unauthorized crypto asset service providers. The FCA’s OIREQ statement indicates that the firm cannot approve any promotions.
Binance partner Rebuilding Society was given until 17:00 UTC the next day to withdraw approvals previously given to unauthorized entities for financial promotions. The FCA also required Rebuilding Society to inform customers using its third-party financial promotion service that it was no longer allowed to approve the content of unauthorized individuals or organisations. On the other hand, the Rebuilding Society is required to withdraw all advertisements offering services of approving financial promotions.
Binance’s latest compliance efforts
The FCA’s action coincides with Binance’s latest effort to ensure financial promotion compliance in the UK through its partnership with the Rebuilding Society. Binance had previously made a statement to meet the FCA’s new financial promotions regime. He emphasized that he used the Rebuilding Society, a firm with FCA authorization and regulatory approval.
The FCA has introduced a new regulatory regime governing crypto asset financial promotions, effective from 8 October. These regulations include websites like Binance, social media channels, and online advertisements. It also covers crypto promotions on various media platforms such as these. The FCA is sanctioning unregistered crypto asset firms that fail to comply with financial promotion guidelines. The enforcement is based on Section 21 of the United Kingdom’s Financial Services and Markets Act 2000, which creates a criminal offence. Penalties include imprisonment for up to two years, an unlimited fine, or both.
Impact on crypto services
The regime change also had repercussions on services such as news feeds. Accordingly, the global website of the Binance exchange is closed. Additionally, platforms such as Coinbase’s app are no longer accessible to users in the UK. For example, some regulated entities, including Archax, are authorized to support promotions on behalf of other crypto companies such as Coinbase and OKX for individuals based in the UK.
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