Binance Stops Accepting New UK Users Following Regulatory Challenge

Binance, a cryptocurrency exchange, is halting new user registrations from the UK to comply with stricter crypto regulations.

The UK’s Financial Promotions Regime for crypto assets, implemented on October 8, requires overseas firms like Binance to collaborate with an FCA-authorized entity for promotions. Binance had partnered with Rebuildingsociety.com (REBS) for this, but the FCA imposed binding requirements on REBS, leading to the withdrawal of approval for Binance’s promotions.

Binance is now searching for a new FCA-authorized partner. Existing UK users will maintain services but can’t access new products. The FCA issued 146 non-compliance alerts after the new rules took effect. Users are advised to check the FCA’s “Warning List” before crypto investments.

The FCA introduced these regulations in February, offering four routes for crypto companies to promote their products.

According to the FCA, crypto companies operating in the UK have four options for promoting cryptocurrencies:

They can either have an authorized person communicate the promotion, an authorized person approve the promotion, a crypto firm registered under the Money Laundering Regulations (MLR) can communicate the promotion, or the promotion must adhere to the conditions of an exemption as outlined in the Financial Promotion Order.