In a major move, Binance, the world’s largest cryptocurrency exchange, has decided to stop new users in the United Kingdom from accessing its platform.
Starting from 5 p.m. London time on Monday, October 16, Binance won’t let new users from the UK sign up, according to an official blog post from the exchange. This decision is a hurdle for Binance, as they want to get back into one of the most important cryptocurrency markets, second only to the United States.
The reason for this change is new rules in the UK that expand the requirements for financial promotions to include crypto service providers, no matter where they’re located. Under these rules, all crypto platforms have to give clear warnings about the risks to people in the UK and meet strict technical standards. Plus, every message they send out must be approved by a firm that the Financial Conduct Authority (FCA) authorizes.
Not following these rules could lead to serious consequences, such as being publicly warned by the FCA, facing huge fines, and potentially even criminal charges.
Binance Looks for New Communications Approver
To follow these rules, Binance initially teamed up with a peer-to-peer lending platform called Rebuildingsociety.com to approve their messages to UK customers, like what’s on their website and app. But, the UK’s Financial Conduct Authority (FCA) recently limited Rebuildingsociety.com’s ability to approve messages for crypto companies. They said any previous approvals had to be taken back by October 11 at 5 p.m. London time.
In response, Binance said they’re on the hunt for a new company to approve their messages. They said: “We’re working closely with the FCA to make sure our users aren’t hurt by these changes, and we’re trying to find another company that the FCA trusts to approve our financial messages as soon as we can.”
This challenge is just the latest in a series of problems with rules and regulations that Binance and its CEO, Changpeng Zhao, are facing around the world. They’re dealing with legal issues in the United States and Canada, and they’re also being investigated by the US Department of Justice.
Before this, the Financial Conduct Authority warned people about using Binance’s services, saying they were concerned about how difficult it was to regulate the exchange because of its complex structure.
As Binance works through these regulatory problems, their decision to stop new users from the UK shows how cryptocurrency exchanges are feeling more pressure to follow stricter rules. It’s a sign that the crypto industry is changing.
BNB’s recovery on the daily chart. Source: BNBUSDT on TradingView.com
At the moment, the price of Binance Coin (BNB) is $219, showing a 1.3% rise in the last 24 hours and a 4.2% increase over the past week.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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