Binance Halts New UK User Registrations

  Binance

Binance, a leading cryptocurrency exchange, has announced a suspension of new user registrations in the United Kingdom. The move is a response to the need for compliance with recently introduced crypto asset promotion laws.

Responding to FCA Regulations

The Financial Conduct Authority (FCA) recently introduced rules requiring firms marketing crypto assets in the UK to either be registered with the FCA, be authorised by the FCA, or to have their marketing approved by an authorised firm. As an unregulated overseas firm, Binance’s previous strategy was to work with FCA-authorised firm Rebuildingsociety.com to ensure compliance with these new rules.

Issues with Compliance

However, the FCA has declared that Rebuildingsociety.com is not licensed to review and approve financial promotions. Binance has stated that it is working closely with the FCA to protect its users and is seeking another appropriate FCA-authorised firm to approve its financial promotions.

Previous Regulatory Challenges

This is not the first time Binance has faced regulatory issues in the UK. In 2021, the exchange lost access to Faster Payments after the FCA ordered it to cease regulated activities in the UK. Earlier this year, the company also had to stop sterling deposits and withdrawals after Paysafe, its partner for the service, severed ties.

Legal Troubles Across the Pond

Binance’s regulatory troubles are not confined to the UK. In the United States, the exchange and its CEO Changpeng Zhao are currently facing a lawsuit from the Securities and Exchange Commission (SEC) for alleged violations of securities law.