Binance Ceases Onboarding New UK Users Amid Regulatory Challenges – Blockonomi

Binance’s effort to comply with regulations keeps hitting roadblocks. No matter how much the global exchange does, there always seems like there is more to do!

The exchange announced a temporary halt on new UK customer registrations in response to the recent amendments from the Financial Conduct Authority (FCA). According to the exchange’s latest updates, Binance will stop onboarding new UK users, starting from Monday 16 October 2023.

How To Get Free Crypto  

The new rules will also place restrictions on the exchange’s existing customers in the UK. Binance noted that available services remain accessible to existing UK users, but “any new products and services will not be made available during this interim period.”

More Heat From Legacy Regulators

On Oct. 8, Binance launched a UK-specific domain in partnership with REBS, an FCA-approved firm, to provide financial promotions in compliance with FCA’s regulations. This was the exchange’s attempt to re-enter the UK markt after its withdrawal of UK operations license in July.

Later on Oct. 10, the UK financial authorities updated its Financial Promotions Regime with legally binding requirements on Ltd (REBS), Binance’s promotion partner in the UK.

The new rules impose restrictions on financial promotion service of REBS on behalf of any crypto-related entities. REBS’ previous statement regarding the partnership with Binance was already removed from its website.

Coinbase Banner  

As reported, Binance is looking to find a new FCA-authorized partner for financial promotions. The exchange affirmed that it was working closely with the regulatory body to ensure that the recent changes in service offerings would not affect their customers.

Financial promotions of high-risk investments like crypto assets are the FCA’s key focus. The agency officially prohibited crypto firms from providing misleading statements to advertise crypto assets. Companies are required to issue clear notice regarding the risks of investing in crypto.

Binance is undoubtedly one of the world’s most popular crypto exchanges. But widespread reputation comes at a price. The leading exchange has been increasingly under the radar of global regulators since the beginning of 2023.

Binance and its founder, Changpeng Zhao, are currently facing a legal lawsuit launched by the U.S. Securities and Exchange Commission (SEC). The agency alleged Binance of violating securities laws, misusing customers’ funds, and market manipulation.

FreeBitcoin Banner  

The exchange is alternatively under scrutiny of the Commodity Futures Trading Commission (CFTC).

Other major jurisdictions are also challenging. The UK FCA and Japan’s financial regulators previously warned that Binance’s operations were’t approved in these regions.

Apart from Binance, the FCA reported over 140 non-authorized crypto-asset firms, including HBT (formerly Huobi) and KuCoin. Up to date, there have been only 42 entities approved by the FCA, including Bitstamp, Revolut, and Gemini.

Crypto Companies Aren’t Ready for MiCA

Since a series of collapses in the crypto sector last year, the global policymakers have ramped up efforts to establish regulations on cryptocurrency. This explains the increased number of legal frameworks formulated across different countries over the course of 2023. However, it takes time for rules to take shape.

Introduced in 2020, the UK Markets in Crypto-Assets Regulation (MiCA) is among the most anticipated legal frameworks.

MiCA regulations aim to create a harmonized regulatory framework for crypto-assets across the member states and to provide greater protection for investors without stiffing innovations.

The laws are set to hit markets in December 2024, however, most crypto companies aren’t ready for the implementation. According to Independent’s new report, crypto firms are seeking to extend “grace period” to ensure regulatory compliance.

Major fintech players, such as PayPal and Revolut, reportedly wrote to the Department of Finance in request for a transitional period before the full implementation. Representatives of these firms expect an additional five-year extension, citing the complexity and costs associated with the implementation as reasons for the request.

Important Note: There have been reports of scammers approaching companies via Telegram, LinkedIn and Other Social platforms purporting to represent Blockonomi and offer advertising offers. We will never approach anyone directly. Please always make contact with us via our contact page here.

Go to Source
Author: Nicholas Say

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

You May Also Like

More From Author

This site uses Akismet to reduce spam. Learn how your comment data is processed.