Cryptocurrency exchange Binance has announced that it has stopped registering new users from the UK on its platform.
Registration has been suspended from 17:00 BST on October 16, 2023.
The suspension of new Binance UK user registrations is due to the new Financial Promotion Regime for Qualified Crypto Assets introduced by the Financial Conduct Authority (FCA), which will come into effect in the UK on October 8, 2023, Binance said. Under the new rules, overseas firms such as Binance should offer their cryptoasset services in the UK by partnering with an FCA-authorized firm.
As required, Binance partnered with FCA-authorized Rebuildingsociety.com Ltd. (REBS) to review and approve financial promotions in the UK. However, on October 10, the regulator imposed legally binding requirements on REBS, with the result that it can no longer conduct financial promotions, and as of 5 p.m. on October 11, it must revoke all existing authorizations to conduct financial promotions on behalf of any cryptocurrency company (including Binance).
As a result, Binance is now urgently seeking a new FCA-authorized firm to partner with in the UK to be authorized to conduct financial promotions.
Binance notes that existing UK users will continue to use the exchange's current services, provided they have completed an investor declaration and passed an eligibility test, but new products and services will not be available during this interim period.
"We are working closely with the FCA to ensure that our users are not harmed by these developments and are looking to find another suitable FCA-authorized firm to approve our financial promotions as soon as possible," Binance said in a statement.
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