Key Points:
- Binance partnered with UK firm REBS for crypto ad approval before FCA restricted REBS.
- Without authorized partner, Binance can’t legally promote crypto offerings in UK.
- Binance says it’s working closely with FCA to minimize impact on UK customers.
Major cryptocurrency exchange Binance has stopped accepting new users from the United Kingdom after the country’s financial regulator restricted its latest regulatory partner from approving crypto promotions.
No New UK Users Amid Search for New Ad Partner
In a blog post on October 16th, Binance announced it will temporarily cease onboarding new UK customers. This comes as the platform seeks a new local partner approved by the Financial Conduct Authority (FCA) to sign off on its cryptocurrency advertisements.
While current UK users can still access services if they have completed identity verification, Binance noted that new products will not be available during this period. The exchange stopped accepting new UK signups as of 5pm local time on October 16.
The move follows the FCA imposing restrictions on Binance’s previous ad approval partner, peer-to-peer lending platform Rebuildingsociety.com Limited (REBS). The regulator barred REBS from approving crypto financial promotions as of October 11th.
Complying With Strict FCA Crypto Ad Rules
Earlier in October, Binance had announced its partnership with REBS to comply with new FCA regulations around crypto marketing. The updated rules require crypto firms to be registered or use an authorized firm to vet advertisements.
However, just days later, the FCA cracked down on REBS, forcing an urgent search for a new compliant partner. According to Binance, it had proactively shared its agreement with REBS with the FCA a week before the ad rules took effect.
The exchange said it invested significant resources into ensuring full adherence and is working closely with regulators to minimize impact on UK customers. But until a new authorized partner is found, Binance cannot legally promote crypto offerings to UK audiences.
The FCA continues to maintain strict oversight of cryptocurrency promotions amid a broad consumer protection push. In September, it added over 140 crypto platforms to its list of unauthorized firms after the new regulations took effect.
Regulatory Compliance Remains a Priority
As one of the world’s largest exchanges, Binance has confronted regulatory hurdles around the globe but made compliance a core strategic priority.
The latest UK developments underscore the challenges of adhering to fragmented national crypto rules. But Binance has emphasized its commitment to working collaboratively with regulators like the FCA to set industry standards.
With its announcement that UK services will be temporarily limited until a new ad partner is secured, the exchange hopes to get back on the front foot in one of the world’s key crypto markets.
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