Major global cryptocurrency exchanges such as Binance and OKX have announced that they are working to comply with the UK’s new financial promotion regulations.
The UK’s Financial Conduct Authority (FCA) enacted the country’s new financial promotions (FinProm) regime for cryptocurrency companies on October 8, aiming to ensure fair, clean and transparent cryptocurrency promotions.
Binance declare On October 6, it launched a new domain for UK users and partnered with local P2P lending platform Rebuildingsociety.
According to the compliance update, starting on October 8, Binance’s UK retail users will be redirected to a localized domain name that will only display Binance products and services that comply with UK regulations. Such products will include spot and margin trading, Binance Pay, a non-fungible token (NFT) market, loans, and more.
However, the announcement states that under the new FCA rules, Binance will stop offering products such as gift cards, referral bonuses, gift cards, academies, and research.
The changes only apply to retail users in the UK and will not affect users exempted under the new FinProm rules, including certain institutional and professional investors.
OK release A statement on FinProm compliance was also released on October 6. The exchange said it has reduced its token offering to about 40 assets and adopted eye-catching risk warnings on its interface. A warning at the top of the OKX homepage invites investors to take a few minutes to learn more about the risks of cryptocurrency investing. The warning content is as follows:
“Don’t invest unless you are prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.”
Additionally, OKX has launched a dedicated UK account on X (formerly Twitter). The company has pledged to mention products and services that comply with the new UK regulations on its social media pages.
Crypto payment service MoonPay is another industry company that has been working to comply with FinProm’s new rules. MoonPay deputy general counsel Matt Sullivan said one of the biggest challenges in ensuring compliance relates to running a global business.
related: UK FCA issues ‘final warning’ to unregistered cryptocurrency firms over advertising regime compliance
“Ensuring compliance with all these new requirements in the UK while operating globally is a challenge,” Sullivan said in a statement to Cointelegraph. He added:
“Ensuring compliance with FinProm rules requires localized product updates, implementation of new processes and policies, and company-wide education. (…) There may be a period of ‘adaptation’ and initial views on the application of certain rules That may change over time.”
Some cryptocurrency companies have apparently been struggling to comply with the UK’s new promotional rules.According to an official statement released by the FCA on October 8, major cryptocurrency exchanges such as KuCoin and cooperative (formerly Huobi) may promote its services without permission. The companies are listed among 143 entities known as “unauthorized companies”, which are not allowed to operate in the UK.
A total of 143 new entities have been added to the warning list, including major exchanges such as Huobi-owned HTX and KuCoin. The warning list doesn’t reveal much other than the statement “You should avoid dealing with this company.”
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