The UK Financial Conduct Authority (FCA) has blocked Binance’s attempt to market itself to British consumers under the latest regulatory measures targeting the cryptocurrency industry.
Binance, the world’s largest cryptocurrency exchange, sought to comply with new industry standards by partnering with a locally regulated firm, Rebuildingsociety.com, based in Leeds. However, the FCA added Rebuildingsociety.com to its list of regulated companies forbidden from promoting crypto services in the UK, hindering Binance’s expansion plans in the UK market.
This development is another setback for Binance, which, in 2021, was ordered by the FCA to halt all regulated activities in the UK. The FCA has recently gained powers to oversee aspects of the crypto industry, including anti-money laundering rules and advertising standards.
The new rules, effective as of Sunday, impose fines and potential imprisonment for companies promoting crypto assets to UK customers without approval, regardless of their location.
In response to the new rules, the FCA has issued over 150 warnings to companies not registered or authorized by the regulator. Other cryptocurrency exchanges, such as Huobi and KuCoin, have received warnings, and Bybit announced plans to wind down its operations in the UK due to compliance challenges.
Binance, which claims to have no headquarters and has faced regulatory challenges globally, had expressed its intention to comply with the FCA rules through the partnership with Rebuildingsociety.com. However, the recent regulatory action highlights ongoing tensions between Binance and financial regulators. Rebuildingsociety.com has until the end of Wednesday to withdraw all crypto promotions, and it intends to appeal the decision.
