The United Kingdom’s Financial Conduct Authority (FCA) has taken a firm stance against Binance’s operations by imposing restrictions on its local partner, Rebuildingsociety.com. According to the FCA’s website, the regulator has prohibited Rebuildingsociety.com from approving financial promotion content from unauthorized individuals or entities. This restriction implies that Binance’s UK affiliate must revoke any prior approvals given to unlicensed entities.
Furthermore, the FCA has directed Rebuildingsociety.com to inform its clients that it is not authorized to endorse content from unauthorized sources. Additionally, the company is required to retract any advertisements promoting its services. To comply with the FCA’s orders, Rebuildingsociety.com must complete these actions by 5 PM BST on October 11. The company is also obligated to send a written confirmation of compliance to the authorities before October 13.
Rebuildingsociety.com was introduced as a strategic partner of Binance to assist with the approval of the exchange’s marketing materials, ensuring compliance with local regulations. Binance had previously withdrawn its FCA registration in June, but on October 6, the exchange unveiled a dedicated page for its UK clientele in collaboration with Rebuildingsociety.com, an FCA-registered firm.
While the FCA’s order does not explicitly mention Binance, it highlights the exchange’s failure to register with the authority. Notably, Binance does not appear on the FCA’s list of 143 unauthorized entities. This raises questions about Binance’s regulatory compliance and its standing within the UK market.
Binance’s Response
Binance claims that it had shared its agreement with Rebuildingsociety.com with the FCA a week before the new regulatory regime became effective. The exchange has also developed a dedicated page for its UK customers, ensuring compliance with the detailed requirements of the new regulations. In a press statement, Binance mentioned that the FCA had issued warnings to over 140 firms for breaches of the Financial Promotions Regime since its recent update on October 8.
The FCA’s restrictions on Binance’s UK affiliate, Rebuildingsociety.com, have raised concerns about the exchange’s compliance with regulatory requirements. Binance’s lack of official registration with the FCA further adds to the uncertainty surrounding its operations. As the cryptocurrency industry continues to face increasing regulatory scrutiny, it is crucial for companies like Binance to prioritize compliance in order to maintain trust and legitimacy within the market.
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