Binance, the world’s largest cryptocurrency exchange, stopped accepting new customers in the United Kingdom in compliance with new regulations restricting foreign firms from promoting digital assets in the country.
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Fast Fact
- Binance stopped accepting new registrations as of 5 p.m. Monday in the U.K. (12:00 a.m. in Hong Kong). The exchange said existing users in the U.K. will have their services unaffected.
- The Financial Conduct Authority (FCA) revoked the exchange’s U.K. permissions at Binance’s request earlier this year after the regulator raised concerns about the firm’s ambiguous corporate structure in 2021. On Oct. 8, Binance attempted to reinstate some local services with partner, Rebuildingsociety.com Ltd, a regulated entity.
- On Oct. 10, the FCA intervened and asked Rebuildingsociety to withdraw any existing approvals.
- “Binance is currently looking for a new FCA authorised approver. However, there will be some temporary restrictions coming into effect on our Platform,” the company said.
- As of October 8, following changes to the U.K.’s Financial Services and Markets Act (FSMA), it is now a criminal offense for unlicensed crypto firms to advertise digital asset products in the country.
- The exchange has been facing regulatory challenges worldwide, including in the U.S., where Binance has been sued by the Securities and Exchange Commission and the Commodities Futures Trading Commission earlier this year.
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