Binance, a cryptocurrency exchange, will temporarily stop accepting new customers from the UK due to the Financial Conduct Authority’s (FCA) restrictions on its operating partner. Existing UK registered users can continue to access services if they have completed the “Investor Declaration and Appropriateness Test.” Binance is actively working with the FCA to minimize the impact on traders.
The FCA has implemented stricter promotion regulations for digital asset service providers, leading to penalties for non-compliance. Other exchanges, including Huobi and KuCoin, have already been added to the FCA’s warning list. The FCA released data showing that trading firms made significant adjustments or withdrew promotions to comply with their regulations.
To comply with FCA rules, Binance hired Rebuildingsociety.com to help with marketing communication to UK customers, but the FCA restricted their authority to approve communications for crypto platforms. This has led to Binance’s suspension in the UK, adding to the regulatory scrutiny the platform and its CEO, Chanpeng Zhao, face as they also deal with legal issues from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).