In response to a recent crackdown by the UK’s Financial Conduct Authority (FCA), Binance UK has temporarily ceased accepting new customers from the country.
The FCA issued a warning to Binance UK’s partner firm, Rebuilding Society, restricting it from approving crypto ads. This move has led Binance UK to seek a new FCA-authorized approver. Until a new partnership is established, the crypto exchange’s services in the UK will be limited.
Existing Binance UK users will not be affected by this change in terms of access to current services. However, they will not be able to avail new products or services.
The crypto exchange stated that it is closely collaborating with the FCA. Last week, the regulator cracked down on Rebuilding Society and ordered the firm to withdraw existing approvals for crypto financial promotions. The FCA also stated that it “must not approve the content of any financial promotion for a qualifying crypto asset for communication by an unauthorized person.”
A spokesperson from Binance said that the exchange engaged with the FCA regarding its agreement with Rebuilding Society on Oct. 2. The official announcement was made on Oct. 8, followed by the FCA’s warning to the firm two days later.
The spokesperson also revealed that considerable time and resources were invested to ensure that Binance UK is “positioned to comply with the detailed requirements.”
The FCA started enforcing new crypto promotion regulations this month. Over 140 companies have been targeted by the FCA to curb illegal crypto financial promotions in the UK.
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