On October 16, Binance announced restrictions for UK users. The FCA's (Financial Conduct Authority) guide about crypto ads is to blame. Registration of new users has already been suspended, and restrictions have been applied to the exchange's current clients.
Why Binance is facing problems in the UK
According to Binance’s announcement, this move comes as a result of restrictions on the promotion of cryptoasset businesses in the UK, which started to take effect on October 8.
Among other things, these rules allow crypto companies to engage firms authorised by the FCA, which will review and monitor compliance with the new regulator’s rules. Binance engaged the firm Rebuildingsociety.com Ltd ("REBS"). However, on October 10, the FCA imposed restrictions on it. From October 11, REBS "had to withdraw any existing approvals of financial promotions on behalf of any cryptoasset businesses (including Binance)".
Now, Binance needs a replacement. While "looking for a new FCA authorised approver", the exchange has decided to introduce restrictions.
Binance’s new restrictions for UK users
The temporary rules are divided into two types: for new users and for current ones. With new clients, everything is simple. Since October 16, the exchange has stopped accepting them from the UK.
For current users, the following has been introduced:
1) they will retain access to current Binance services and products, provided "they have completed their investor declaration and appropriateness test";
2) but they will not be allowed to access new products for the duration of these restrictions.
Binance also stated that it would provide more reminders about the risks and advise clients to read the sections dedicated to cryptoassets. For this purpose, the exchange has pages with guides: "Take 2 minutes to learn more" and "Different Cryptoasset Risks".
Moreover, Binance advised reading the "information" section of each specific trading pair to learn more about the cryptocurrencies available for spot trading.
Binance is not the first exchange to face problems in the UK
At the end of September, similar pressures were reported by Bybit, which imposed stricter rules. In fact, the exchange almost completely left the UK market. Read more in our article: Bybit suspends operations in the UK due to crypto ads regulation.
The new FCA rules regarding the promotion of crypto companies are harsh. There surely will be more news in the future about different major industry players facing problems in the UK. Time will tell what the crypto landscape in the country will look like later.
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