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Binance UK, one of the leading cryptocurrency exchanges, has made an announcement that it will temporarily cease accepting new UK customers. This decision comes in the wake of a warning issued by the Financial Conduct Authority (FCA) to its partner firm, Rebuilding Society.
Background
The FCA’s warning to Rebuilding Society led to a ban on the firm from approving cryptocurrency advertisements. In response to this, Binance UK stated in a recent blog post that they are in the process of seeking a new FCA authorized approver. Until such a partnership is established, Binance UK has decided to limit its services within the UK.
Impact on Existing Users
While new registrations will be halted, existing users of Binance UK will still have access to their current services. However, they will not be able to avail any new products or services that the platform might introduce in the future.
Binance UK’s Collaboration with the FCA
Binance UK has emphasized its close collaboration with the UK’s Financial Conduct Authority. The exchange had previously engaged with the FCA regarding its agreement with Rebuilding Society. This engagement took place on October 2nd, and Binance made its official announcement on October 8th. Just two days after this announcement, the FCA issued its warning to Rebuilding Society.
A spokesperson from Binance conveyed to Blockworks that the exchange has invested a significant amount of time and resources to ensure that its UK entity aligns with the necessary requirements.
FCA’s Stance on Crypto Promotions
Earlier this month, the FCA started the official enforcement of new cryptocurrency promotion regulations. This came after the regulator had issued multiple warnings in the lead-up to the rollout. Since the enforcement of these regulations, the FCA has issued warnings to over 140 companies in an effort to curb illegal cryptocurrency financial promotions within the UK.
Conclusion
The evolving landscape of cryptocurrency regulations in the UK has led to significant changes in the operations of major exchanges like Binance UK. As the FCA continues to tighten its grip on crypto promotions, exchanges and other crypto-related entities will need to adapt swiftly to ensure compliance.
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