Key takeaways:
- On October 16, users in the UK will no longer be able to register on the cryptocurrency exchange Binance.
- The ruling forbade REBS from promoting products and services offered by Binance, among other things.
On October 16, users in the UK will no longer be able to register on the cryptocurrency exchange Binance.
Binance announced that the action was taken in response to legally obligatory obligations that its partner Rebuildingsociety[.]com Ltd. (REBS) faced on October 10, as mandated by the Financial Conduct Authority (FCA) of the UK.
The ruling forbade REBS from promoting products and services offered by Binance, among other things. The exchange said:
“Binance is currently looking for a new FCA authorised approver. However, there will be some temporary restrictions coming into effect on our Platform during the period until Binance onboards with a new FCA authorised approver and has its financial promotions reapproved.”
Users of Binance who are currently based in the United Kingdom will continue to receive their services. The exchange made it clear that “any new products and services will not be made available during this interim period.”
Presently unavailable on Binance’s UK platform are several items that are available on the company’s international platform, including gift cards, Binance Academy, Binance Research, Binance Feed, and Referral Bonus.
Exchanges are now required to promote to UK consumers in a clear, equitable, and honest manner and “must also provide risk warnings people understand,” according to a set of new regulations on cryptocurrency marketing that the FCA started implementing.
The decision also made it possible for organizations registered with the FCA to promote goods and services on behalf of foreign companies that are not FCA-registered.
Since the exchange is not registered with the FCA, Binance intended to use REBS to enable its users in the United Kingdom to examine the products and services offered by the exchange through a localized domain.
Following a wave of text message phishing attacks that targeted 11 Binance users in Hong Kong, the authorities in that city have issued a warning. Eleven Hong Kong-based Binance customers have claimed losses of over $446,000 over the last two weeks.
