Effective today (Monday), Binance will temporarily halt the registration of new users in the United Kingdom. This move comes in response to the recent restrictions imposed by the Financial Conduct Authority (FCA), which prevented Binance's local partner from approving cryptocurrency advertisements.

The exchange initially partnered with Rebuildingsociety.com. The partnership was intended to facilitate the approval of Binance's promotional materials and advertisements, ensuring compliance with the new advertising regulations that came into effect on October 8. However, the FCA recently announced that Rebuildingsociety.com lacked the authorization to approve crypto-related ads.

Binance Faces Challenges with FCA's New Rules

In a statement on its website, Binance stated that while it will cease accepting new UK users for the time being, existing users who have successfully completed the "Investor Declaration and Appropriateness Test" can continue to access the platform's services. However, they will not be permitted to explore or engage with any new products or services introduced during this period.

Binance had taken proactive steps to adhere to the FCA's evolving regulations. Recently, the platform launched a dedicated domain, www.binance.com/en-GB, catering specifically to retail users in the UK. This domain offers services that align with the updated regulations, including fiat transactions, cryptocurrency deposits and withdrawals, spot trading, margin trading, access to the NFT marketplace, Binance Pay, crypto loans, and the launchpad.

FCA's Licensing Reforms

FCA's new rules state that cryptocurrency firms must be registered with the regulatory authority to approve their promotional materials and advertisements independently. Firms not registered with the FCA can obtain approval from authorized entities. This shift is intended to strengthen oversight and ensure responsible crypto advertising practices in the UK.

In June, Binance withdrew its UK subsidiary, Binance Markets Limited (BML), from registration with the FCA. The FCA initially flagged the subsidiary in mid-2021, triggering alerts from financial market watchdogs worldwide. The FCA subsequently imposed restrictions on Binance Markets Limited, preventing the firm from engaging in regulated activities within the UK.