UK regulators have taken action to stop Binance from connecting with British consumers, as part of their recent efforts to tighten oversight on the cryptocurrency industry.
Binance, the world’s largest cryptocurrency exchange, has faced challenges with UK regulators. They tried to meet industry standards by partnering with a UK-based company, Rebuildingsociety.com. However, the Financial Conduct Authority (FCA) included this partner on its list of regulated companies banned from promoting crypto services in the UK. This setback hinders Binance’s expansion plans in the UK.
In 2021, the FCA had already instructed Binance to stop regulated activities due to unanswered inquiries. New rules state that promoting crypto assets to UK customers without approval can result in fines and possible imprisonment, affecting both UK and foreign-based companies.
Within three days of these rules, the FCA issued over 150 warnings to unregistered companies, including exchanges like Huobi and KuCoin. Rebuildingsociety.com had until the end of Wednesday to remove crypto-related promotions, according to the FCA.
Rebuildingsociety.com expressed disappointment and plans to appeal the decision, while Binance stated its commitment to meeting FCA requirements. A digital assets specialist noted the FCA’s emphasis on preventing risks and intervening early to prevent harm in the crypto industry.
Important:Â 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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