Key Takeaways :
- FCA Places Restrictions on Rebuilding Society’s Crypto Promotion Approvals in Partnership with Binance
- Rebuilding Society must withdraw prior approvals for financial promotions to unauthorized entities by Wednesday.
In a recent development, the Financial Conduct Authority (FCA) has taken steps to impose limitations on Rebuilding Society, the UK-based entity responsible for approving financial promotions on behalf of crypto-asset service providers, particularly unauthorized ones.
The FCA’s intervention on Tuesday has resulted in a set of restrictions that prohibit Rebuilding Society from endorsing or approving the content of financial promotions related to qualifying crypto-assets for communication by unauthorized individuals or entities, as outlined in the FCA’s OIREQ requirement.
Furthermore, Rebuilding Society has been issued a deadline, set at 5 pm BST on Wednesday, to retract any prior approvals for financial promotions granted to unauthorized entities. Additionally, the FCA has mandated that the firm must communicate to its clients using its third-party financial promotions service that it can no longer approve content originating from unauthorized sources.
This regulatory action from the FCA follows Binance’s recent partnership with Rebuilding Society, which took place just before the implementation of more stringent rules governing crypto promotions over the weekend.
Under these new regulations, crypto firms are required to register with the FCA to obtain approval for their own promotional and advertising materials. However, these rules also permit unregistered crypto companies to seek approval for their ads through authorized firms.
In this context, Binance, which is not registered with the FCA, had sought compliance with the new regulations by collaborating with Rebuilding Society for the approval of its communication materials.
This development follows closely on the heels of Binance’s announcement of its commitment to align with the evolving regulatory framework in the United Kingdom. This strategic decision comes in the wake of a previous announcement indicating Binance’s withdrawal from the UK market.
The Financial Conduct Authority (FCA) issued an alert stating that Rebuildingsociety.com is no longer authorized to endorse cryptocurrency advertisements for companies and must “promptly rescind any prior approvals for crypto promotions.”.
Additionally, the FCA has instructed Rebuilding Society to notify clients utilizing its third-party financial promotions service that it lacks the authority to endorse content originating from unauthorized individuals or entities. Furthermore, the firm is mandated to retract any advertisements that promote its services for the approval of financial promotions.
