Binance UK Suspends New User Registrations As FCA Clamps Down

Updated: 17 October 2023

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Binance UK said it blocked new users from its exchange so that it remain compliant with new rules governing how it communicates with local investors.

Binance suspended the onboarding of new users from Oct, 16 at 5 p.m. UK time, it said. Existing users still have access to their funds and the exchange’s services provided they complete the “Investor Declaration and Appropriateness Test,” it added.

The decision came after its marketing partner, Rebuildingsociety.com Ltd (REBS), was subjected to legally binding restrictions on October 10 by the UK’s Financial Conduct Authority (FCA).

The restrictions prevent it from approving Binance’s communications with local investors, as is required by the FCA under new rules that came into effect Oct. 8.

Binance halts onboarding of new UK users

Crypto exchange Binance will stop accepting users in the United Kingdom as of 5 p.m. local time on Oct. 16. According to Binance’s announcement, the move came after the country’s Financial…https://t.co/3f8hS6Lsm4

— Block Journal (@blockjournal) October 16, 2023

Binance Searching For FCA-Authorized Approver

Binance is now searching for a new FCA-authorized approver and said that “any new products and services will not be made available during this interim period.”

The new requirements are part of the Financial Promotions Regime, which also required crypto exchanges to adopt a 24-hour cooling-off period for new clients and clearly outline risks to UK-based consumers.

The Regime, created specifically for crypto companies, is aimed towards guaranteeing that crypto promotions in the UK are carried out in a fair, transparent, and reliable manner.

With these new guidelines, the FCA is looking to tighten the screws on crypto companies operating in the country without authorization or compliance with the UK regulations, potentially putting customers at risk.

Other crypto companies affected include KuCoin and Huobi-owned HTX, which were added to the regulator’s warning list along with 140 others.

More Regulatory Issues

Binance Faces Regulatory Scrutiny Across The World

The development adds to Binance’s regulatory concerns with various financial watchdogs across the world. The crypto exchange is also facing regulatory action in the US, where the Securities and Exchange Commission (SEC) is suing it and CEO Changpeng Zhao.

In the lawsuit, the exchange was accused of among other charges, trading unregistered securities and operating a “web of deception.” Binance and Zhao have filed for the lawsuit to be dismissed, citing overreach by the regulatory body