In response to the Financial Conduct Authority’s (FCA) stringent regulations on cryptoasset promotions, Binance, one of the globe’s leading cryptocurrency exchanges, has announced the suspension of new customer registrations in the United Kingdom. The decision, which took effect at 5 PM local time on Monday, signifies a crucial development in the evolving landscape of cryptocurrency regulations within the UK.
The FCA’s new regulations, which became operational on October 8, have prompted Binance to halt the onboarding of new users in the UK. These regulations restrict overseas digital asset firms from conducting promotional activities within the country, reflecting a growing global concern surrounding the cryptocurrency industry’s operational practices.
This move follows the FCA’s recent decision to prohibit peer-to-peer platform rebuildingsociety.com↗︎ from approving financial promotions for Binance and other crypto asset firms. The FCA emphasised that unregistered cryptoasset companies are prohibited from promoting their offerings to UK consumers without the approval of an authorised firm.
In response, Binance issued a statement↗︎ acknowledging the regulatory challenges and affirmed its collaboration with the FCA to adhere to the new rules. The company expressed its dedication to swiftly finding another FCA-authorized firm, ensuring the approval of their financial promotions, and subsequently resuming services for new UK customers.
