Binance Faces Regulatory Hurdles in Meeting UK Crypto Ad Rules

<p>The Financial Conduct Authority (FCA) has disrupted
Binance's plans to adhere to the UK's new crypto marketing regulations. This
occurred after its partner in the UK, Rebuildingsociety.com, was barred from approving
crypto advertisements in the country.</p><p>The cryptocurrency exchange, not being registered
with the FCA, had partnered with Rebuildingsociety.com just ahead of the
implementation of new crypto promotion rules. This partnership was aimed at
securing approval for the crypto exchange's communications and advertisements. </p><p>FCA's New Crypto Marketing Rules</p><p>The new rules mandate crypto firms to register with the FCA
to independently approve their promotions and advertisements. However, the
rules allow unregistered crypto firms to seek approval from authorized
entities.</p><p>The notice published by the <a href="https://www.financemagnates.com/tag/fca/" target="_blank" rel="follow">FCA</a> indicates that
Rebuildingsociety.com lacks the authority to approve crypto ads for firms. The
FCA further instructed the firm to "withdraw any existing approvals for
crypto promotions" and demanded a written confirmation of <a href="https://www.financemagnates.com/terms/c/compliance/">compliance</a> by
Friday.</p><p>The regulator wrote: "On October 10, 2023, we imposed
restrictions on Rebuildingsociety.com Ltd to restrict it from approving
crypto asset financial promotions. We have used our powers under section 55L of
the Financial Services and Markets Act to impose these restrictions."</p><blockquote><p lang="en" dir="ltr">We’re restricting <a href="https://t.co/WFdeaFowI0">https://t.co/WFdeaFowI0</a> Ltd from approving <a href="https://twitter.com/hashtag/cryptoasset?src=hash&amp;ref_src=twsrc%5Etfw">#cryptoasset</a> financial promotions. <a href="https://twitter.com/hashtag/crypto?src=hash&amp;ref_src=twsrc%5Etfw">#crypto</a> <a href="https://twitter.com/hashtag/FinancialPromotions?src=hash&amp;ref_src=twsrc%5Etfw">#FinancialPromotions</a> <a href="https://twitter.com/hashtag/FinancialServices?src=hash&amp;ref_src=twsrc%5Etfw">#FinancialServices</a> <a href="https://t.co/xqUnyn83DZ">https://t.co/xqUnyn83DZ</a></p>— Financial Conduct Authority (@TheFCA) <a href="https://twitter.com/TheFCA/status/1711774335508119735?ref_src=twsrc%5Etfw">October 10, 2023</a></blockquote><p>However, investors who have engaged with unregistered crypto
asset firms through the approval of Rebuildingsociety.com Ltd can still have
access to communications regarding their existing assets. This means they can
manage transactions such as withdrawals, transfers, or sell their assets.</p><p>Binance Customizes Services to Align with FCA Rules</p><p>Binance is one of the crypto exchanges preparing to comply
with FCA's new regulations. Last week, the platform <a href="https://www.financemagnates.com/cryptocurrency/binance-prepares-for-uks-financial-promotions-regime-introduces-dedicated-domain/" target="_blank" rel="follow">launched a new domain</a>,
www.binance.com/en-GB, specifically for retail users in the UK. The platform
offers services that adhere to the updated regulations, including fiat
transactions, crypto deposits and withdrawals, spot trading, margin trading,
access to the NFT marketplace, Binance Pay, crypto loans, and the launchpad.</p><p>However, Binance no longer offers certain services,
including gift cards, access to Binance Academy, research resources, feed
features, and referral bonuses, for users in the UK. These adjustments affect
retail users, as certain institutional and professional investors enjoy
exemptions under the new Financial Promotions Regime.</p><p>The FCA enforced the new regulations yesterday (Monday) by
issuing a total of 146 alerts related to crypto asset promotions within the
first 24 hours of its implementation. The watchdog urged consumers to consult
the warning list before making any crypto investments. This list is a resource
to help consumers identify firms whose promotions may breach the law.</p><p>Since October 8, 2023, firms promoting cryptoassets in the
UK must either be authorized or registered by the FCA or have their <a href="https://www.financemagnates.com/terms/m/marketing/">marketing</a>
approved by an authorized firm, as mandated by law. Promotions <a href="https://www.financemagnates.com/cryptocurrency/fca-seeks-incentives-ban-with-new-crypto-promotion-rules/">must adhere to FCA rules</a>, ensuring they are clear, fair, not misleading, and include prominent
risk warnings.</p>

This article was written by Jared Kirui at www.financemagnates.com.