Binance and OKX Adapt to UK's FCA Regulation; Huobi, KuCoin, and Over 140 Flagged as 'Non-Authorized'

Binance and OKX Adapt to UK’s FCA Regulation; Huobi, KuCoin, and Over 140 Flagged as ‘Non-Authorized’

Updated: 09 October 2023

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Crypto exchanges Binance and OKX have taken steps to realign their operations with the UK Financial Conduct Authority’s (FCA) digital asset regulations

The regulatory body also added over 140 crypto exchanges, including Huobi-owned HTX and KuCoin, to its warning list of “non-authorized” firms that customers should avoid.

The move comes in response to the FCA’s “rules for marketing crypto-assets,” which were outlined in June and officially took effect on October 8.

“We are pleased that our partnership with Rebuildingsociety.com allows us to meet our regulatory commitments in the UK and provide uninterrupted service to our users,” Binance said.

Streamlined Access to Compliant Binance Products, Services for UK Retail Users

UK retail users will now be directed to a new website that exclusively displays Binance products and services that comply with UK regulations, Binance said. These services include fiat and cryptocurrency deposits and withdrawals, spot trading, margin trading, conversion services, access to the NFT marketplace, Binance Pay, crypto loans, and the Launchpad platform.

However, services like Gift Cards, Academy, Research, Binance Feed, and Referral Bonuses will no longer be available to UK retail users as they do not align with the updated regulations.

OKX Adapts, Enhances Compliance

Similarly, OKX has taken steps to align with the FCA’s Financial Promotions Regime, focusing primarily on enhancing compliance measures, especially for retail customers. “In compliance with the updated rules, we developed a new user experience that is compliant with the requirements set out in the Financial Promotions Regime, and we are excited to continue to offer crypto services to UK users,” the company said in a statement.

Starting Oct 8, we will implement changes due to new UK Financial Conduct Authority regulations.

The updates ensure compliance with the Financial Promotions Regime for retail users. #OKX will continue to provide crypto services to our UK clients.https://t.co/g3kBL7Yo50

— OKX UK (@okx_uk) October 8, 2023

Among the key adjustments made is the streamlining of its available tokens to include over 40 assets, it said.

OKX has taken a proactive approach to risk management by introducing clear and eye-catching risk warnings throughout its platform. A notable risk warning can be seen on the platform, ensuring that users are well-informed about the potential risks associated with cryptocurrency investments.

OKX’s FCA-Compliant Warning (Source: OKX)

FCA Flags Over 140 ‘Non-Authorized’ Crypto Exchanges

Similarly, the FCA took action on October 8 by adding 143 new entities, including major exchanges like Huobi-owned HTX and KuCoin, to its warning list of “non-authorized” firms that customers are advised to avoid.

UK firms wishing to “carry out crypto asset activities” must either be registered with the UK regulatory body or have been granted temporary status to operate. The FCA has made it clear that failure to comply could result in various forms of enforcement action, including placing firms on its warning list and requesting takedowns of websites, social media accounts, apps, and other promotional materials that breach regulations.

We’ve issued 26 new #FCAwarnings to unauthorised and clone firms in the last 7 days.

Protect yourself and find all recent warnings https://t.co/0qLeqfLwyy pic.twitter.com/1R4HRI9rhQ

— Financial Conduct Authority (@TheFCA) October 6, 2023

The FCA’s actions follow its disclosure in August that it had received 291 applications for registration since 2020 but approved only 38 of them, illustrating the strict criteria for registration. The FCA’s list of registered crypto asset providers includes 42 entities, including well-known names like Bitstamp, Revolut, and Gemini.