UK: Binance to temporarily stop accepting new users and this is why…
- Binance places restrictions on new users from the United Kingdom
- The restriction comes in the wake of new FCA rules for financial marketing
The world’s largest crypto exchange — Binance seems to have met with another blockade in the west. According to the latest developments, the firm will be baring new UK users from availing its services for now. The cause leading to this action is the Financial Conduct Authority (FCA)’s new rules that came into effect on 8 October.
?BINANCE- FROM 16 OCTOBER 2023 AT 5PM UK TIME, BINANCE WILL STOP ACCEPTING NEW UK USERS
— *Walter Bloomberg (@DeItaone) October 16, 2023
FCA’s new rules setsback Binance
The rules stated that non-registered crypto platforms were required to collaborate with an FCA-authorized firm for marketing purposes. In line with this rule, the exchange had agreed to conduct this business with Rebuildingsociety.com Ltd (REBS). However, on 10 October, this particular platform lost its rights to greenlight financial promotions. Thus resulting in Binance halting new registrations in the region.
Meanwhile, existing users can continue to access their accounts without any problems. However, they will not have access to new products or services till this issue is addressed. In a press release, Binance said,
“Binance is currently looking for a new FCA authorised approver. However, there will be some temporary restrictions coming into effect on our Platform (i.e. www.binance.com/en-GB and latest version of our Mobile App) during the period until Binance onboards with a new FCA authorised approver and has its financial promotions reapproved.”
Notably, the latest FCA action does not just have Binance in a bind, but also other platforms. Crypto exchanges Kucoin and HTX (formerly Huobi) have come under the radar of the regulatory authority as well.
The FCA added these exchanges to its warning list of companies operating without permission. This effectively means that customers of this platform would not be eligible for financial loss schemes if they went under.
Binance woes with regulators grow
The latest encounter with the FCA rules is not the only problem the exchange has had with regulators so far. The first big hit it faced was from the US regulator — the Securities and Exchanges Commission (SEC). Binance, its CEO – Changpeng Zhao, and Binance.US – its American wing, were all sued by the SEC for illegally listing unregistered securities and offering their services to US customers.
In the latest development on that front, CZ and Binance have moved to courts to have the case dismissed. The filing argues that the SEC does not have the sole authority over the crypto markets as per all the proposals considered by the US Congress.
It said, “The SEC now seeks to expand its authority and filed this lawsuit, asserting claims against Binance Holdings Limited (‘BHL’) and Changpeng Zhai, among others.”