{"id":73363,"date":"2023-10-16T20:04:44","date_gmt":"2023-10-17T00:04:44","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/binance-set-to-temporarily-cease-onboarding-new-customers-following-an-fca-restriction-on-uk-partner\/"},"modified":"2023-10-16T20:04:47","modified_gmt":"2023-10-17T00:04:47","slug":"binance-set-to-temporarily-cease-onboarding-new-customers-following-an-fca-restriction-on-uk-partner","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=73363","title":{"rendered":"Binance Set to Temporarily Cease Onboarding New Customers Following an FCA Restriction on UK Partner"},"content":{"rendered":"
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Binance will temporarily shut its doors to new customers in the UK. This follows a restriction on the exchange’s operating partner in the UK by the Financial Conduct Authority (FCA).\u00a0<\/p>\n

According to an announcement<\/u> by the exchange on October 16, 2023, crypto traders and investors who have not registered with the trading platform will be unable to do so in the UK going forward.<\/p>\n

However, existing UK registered users can access the available services if they have initially completed the \u201cInvestor Declaration and Appropriateness Test.\u201d\u00a0<\/p>\n

Meanwhile, the exchange has revealed that it is working with the FCA to ensure traders are not affected by these developments.\u00a0\u00a0<\/p>\n

Insights on Binance\u2019s Fall and UK\u2019s Stringent Promotion Regime\u00a0<\/h2>\n

The FCA\u2019s promotion regime was expanded to accommodate digital assets service providers, regardless of their region of operation.\u00a0<\/p>\n

All platforms must now integrate clear risk warnings on services offered to UK-based traders and meet communication standards before being approved by the FCA.\u00a0\u00a0<\/p>\n

Penalties for disregarding the new financial promotion rules include an addition to the regulator’s public cautionary list, fines, and potential jail term.\u00a0<\/p>\n

Huobi, KuCoin, and 143 other exchanges have already been added to the FCA\u2019s warning notice<\/u> as of October 8.<\/p>\n

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The UK\u2019s financial watchdog had initially released data<\/u> on financial promotions for the second quarter between April and June 2023.\u00a0\u00a0<\/p>\n

According to this data, FCA\u2019s stringent approach prompted trading firms to make significant adjustments or withdraw 1,507 promotions under its oversight.<\/p>\n

In its bid to get FCA approval, Binance hired<\/u> Rebuildingsociety.com, a peer-to-peer lending platform, on October 6 to help the exchange adhere to FCA rules on marketing communications to UK-based customers.\u00a0<\/p>\n

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This included all texts geared towards adverts on its website and mobile application.\u00a0<\/p>\n

However, the FCA restricted<\/u> Rebuildingsociety.com\u2019s authority to approve communications for crypto platforms. The ban instructed the firm to retract all existing approvals, including Binance’s.\u00a0<\/p>\n

Binance\u2019s suspension of its UK entity indicates more regulatory scrutiny for the platform and its chief executive, Chanpeng Zhao.\u00a0\u00a0<\/p>\n

The exchange has been in a legal tussle with the Securities and Exchange Commission (SEC)<\/u> and the Commodity Futures Trading Commission (CFTC)<\/u> over its alleged operation as an unregistered exchange.<\/p>\n<\/p><\/div>\n