Binance Suspends New UK Registrations Due to Regulatory Changes

The leading cryptocurrency exchange, Binance, has stopped accepting new customers from the UK as of October 16, following the introduction of the Financial Promotions Regime for qualifying crypto assets by the UK’s Financial Conduct Authority (FCA). This decision reflects Binance’s efforts to adapt to the new regulatory environment.

Previously, Binance collaborated with an FCA-authorized firm to facilitate its operations in the UK. However, due to new legal obligations placed on this partner by the FCA, it was necessary for them to withdraw all existing approvals and discontinue the endorsement of financial promotions. Consequently, Binance is currently without an authorized entity to oversee its financial promotions in the UK.

In light of this situation, Binance is actively searching for a new FCA-authorized firm to endorse its financial promotions. Until such a partnership is established and new approvals are granted, certain restrictions will be in effect on Binance’s platform and mobile application for users in the UK. Existing UK customers will continue to have access to current services, but they will not be able to access new products or features.

On the very first day of the new regime, the FCA issued 146 alerts regarding non-compliance and encouraged consumers to consult its "Warning List" before making investments in cryptocurrencies. The Financial Promotions Regime, which was revealed in February, details four routes for crypto companies to promote their offerings, including adherence to specific exemption conditions outlined in the Financial Promotion Order.

This situation highlights the rapidly changing landscape of cryptocurrency regulation in the UK and emphasizes the critical nature of adhering to regulatory requirements. The Financial Promotions Regime aims to balance the growth of crypto assets with the need for investor protection by establishing clear guidelines for cryptocurrency businesses.

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