n response to escalating regulatory pressures from the Financial Conduct Authority (FCA) in the UK, Binance, one of the world’s leading cryptocurrency exchanges, has announced the suspension of new user registrations in the United Kingdom. Effective from 5 PM local time, this move reflects the FCA’s stringent stance on cryptocurrency regulation and the recent enforcement of rules concerning cryptoasset promotions, which became effective on October 8.
The FCA’s new regulations permit foreign companies such as Binance to promote their crypto services within the UK, provided they collaborate with an FCA-approved entity. However, Binance’s previous partner, Rebuildingsociety.com Ltd, faced legal constraints from the FCA, hindering financial promotion approvals.
This suspension follows several high-profile industry collapses in the past year and is part of Binance’s broader strategy to navigate the continually evolving regulatory landscape. Binance is actively seeking a new firm authorized by the FCA to approve its financial promotions, emphasizing its dedication to adhering to regulatory standards.
While existing UK users who have successfully completed the Investor Declaration and Appropriateness Test will continue to have access to their services, new user registrations are temporarily on hold. Binance is in close communication with the FCA to minimize disruptions related to high-risk crypto assets and to identify a suitable firm for financial promotion approvals.
The FCA, underscoring its commitment to consumer protection, has issued stern warnings to potential violators, including the threat of a two-year imprisonment, an unlimited fine, or both. Binance’s decision to suspend new user registrations underscores the mounting challenges faced by cryptocurrency firms as they strive to navigate the complex global regulatory landscape.
