coinspress.com
In response to evolving regulatory requirements, Binance has temporarily halted new user registrations from the United Kingdom.
The suspension comes as the cryptocurrency exchange actively seeks a suitable partner to ensure compliance with recently introduced rules governing the promotion of digital assets.
The decision to cease onboarding new customers from the UK was officially communicated via a blog post, effective as of 5 p.m. on a recent Monday.
These regulatory changes, implemented by the Financial Conduct Authority (FCA) in the UK, demand that any company engaged in the promotion of cryptocurrency assets must either be granted explicit authorization or registration from the FCA. Alternatively, they must receive the green light from an authorized entity, as stipulated by legal requirements.
In its efforts to align with these regulations, Binance, as an unregulated foreign firm, initially collaborated with Rebuildingsociety.com, an FCA-authorized entity, to oversee and endorse its financial promotions in accordance with the new legal framework.
However, the FCA revealed that Rebuildingsociety.com did not possess the necessary credentials for this task.
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Binance released a statement expressing its commitment to working closely with the FCA to mitigate any potential harm to its user base caused by these recent developments. They are actively exploring options to identify another FCA-authorized entity capable of expeditiously approving their financial promotions.
This isn’t the first time Binance has encountered regulatory challenges in the UK. In 2021, they lost access to Faster Payments when the FCA instructed them to cease regulated activities within the country. Furthermore, earlier this year, Binance had to suspend sterling deposits and withdrawals after their service partner, Paysafe, severed their partnership.