Binance will suspend first-time registrations in the UK starting this week. The cryptocurrency exchange made this decision because it will take some time to make its operations compliant with UK laws regarding cryptocurrency marketing and advertising. The UK is exploring ways to establish itself as a cryptocurrency hub. British Prime Minister Rishi Sunak has recently taken a number of pro-cryptocurrency measures to demonstrate the UK’s commitment to fostering Web3. Having said that, the country does not want to see any financial instability occur as uninformed citizens succumb to cryptocurrency hype and make poor investment decisions.
In an effort to control the craze surrounding cryptocurrencies in the UK, UK authorities have deployed a set of rules to oversee cryptocurrency-related marketing and advertising. These rules come into effect on October 8th. The rules allow cryptocurrency companies registered with the UK’s Financial Conduct Authority (FCA) to review and formally approve their advertising. If not, cryptocurrency companies can seek government-authorized organizations to approve their ads.
A few weeks ago, Binance partnered with Rebuildingsociety.com to receive a green seal in the UK for its promotional materials and advertising. However, Rebuildingsociety.com, which describes itself as a peer-to-peer lending platform, does not have the authority to approve cryptocurrency advertising, so Binance now needs to reassess its status. The exchange is looking for another FCA-authorized firm to approve its advertising.
At the same time, existing Binance users in the UK who have completed the “Investor Declaration and Suitability Test” will be able to use these services. However, they will not be allowed to use any new products or services launched by Binance until Binance obtains an advertising approval agent.
Binance was founded in July 2017 and is the world’s largest cryptocurrency exchange by trading volume. The company has had some run-ins with the Securities and Exchange Commission (SEC) and faces investigations in the United States. In order to avoid legal trouble now in the UK, Binance is prepared to take some time to complete all legal procedures.
Meanwhile, the UK has been taking a strict stance against its citizens being exposed to volatile crypto assets that could cause them financial losses. In May, the country was considering banning “cold calling” marketing techniques for merchants targeting cryptocurrency and insurance businesses.
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