It seems Binance’s troubles are self or something is seriously going against the firm. After the SEC’s legal heatwave in the US, the Financial Conduct Authority (FCA) in the UK has imposed restrictions on Binance’s UK partner for financial promotions compliance, Rebuilding Society. This move follows Binance’s recent announcement of its partnership with Rebuilding Society to ensure compliance in the UK market. The move highlights ongoing regulatory challenges Binance faces in various jurisdictions, including the UK.
FCA’s Loud Shout Out for Binance
The FCA directive prohibits Rebuilding Society from approving financial promotions for crypto assets on behalf of unauthorized service providers. Looks like a known mistake. Nevertheless, this restriction may worsen Binance’s growth in the UK market.
Under the FCA’s intervention, the Rebuilding Society must retract any prior approvals of financial promotions granted to unauthorized entities by 5 p.m. BST on Wednesday. Additionally, the FCA has mandated that the Rebuilding Society inform clients using its third-party promotion service that it cannot approve content from unauthorized sources. Furthermore, any advertisements offering its services for approving financial promotions must be withdrawn.
The news came just after Binance announced its partnership with the Rebuilding Society to adhere to the FCA’s new financial promotions regulations, emphasizing Rebuilding Society’s FCA authorization and regulatory approval.
A Turning Point for Unauthorized Crypto Asset Services in the UK?
The FCA is tightening rules on financial product promotions, ensuring firms have the necessary skills to approve ads. This move aims to balance risk and reward and protect consumers. Crypto firms, too, will face new restrictions. The revised regime for crypto asset financial promotions, which took effect on October 8, applies to promotions across various media channels, including websites, social media, and online advertising. Non-compliance may result in severe penalties, including imprisonment and substantial fines.
It’s worth noting that the regulatory shift has affected services like news feeds on platforms such as Binance’s global website and Coinbase’s app, which are no longer accessible to users in the UK.
