Binance UK regulatory issues intensify
Cryptocurrency exchange Finance has announced that it will stop accepting new users from the United Kingdom.
On that day a Report Published this Monday (16), the company said that from 5pm UK time, no new British customers will be able to sign up to the site.
Binance encouraged existing users to properly inform themselves before investing in cryptocurrencies on the platform.
The UK’s financial regulator, the Financial Conduct Authority (FCA), last week implemented new rules requiring cryptocurrency companies to register with the financial regulator and have their marketing campaigns approved by an FCA-authorised organisation.
Exchanges must also provide reasonable warnings to customers about the risks involved in investing in cryptocurrencies.
Binance used Rebuildingsociety.com to authorize its ads and promotions in the United Kingdom, but the FCA added the company to a list of companies banned from promoting cryptocurrency services in the country.
On Monday, Binance said it is “currently seeking a new FCA-authorized entity” so it can comply with regulations and continue to accept new clients.
“We are working closely with the FCA to ensure that our users are not affected by these developments, and will seek to find another FCA-approved entity to approve our financial ads as soon as possible,” Binance added.
The cryptocurrency exchange has faced increased regulatory scrutiny not only in the United Kingdom, but also in the United States, Brazil, Germany, France, and the Netherlands.
* Translated and edited with permission Encryption.