Binance, one of the world's largest cryptocurrency exchanges, recently announced the launch of a dedicated domain for its UK users, in compliance with the country's updated Financial Promotions Regime. The move is seen as a strategic step to navigate the changing regulatory landscape in the UK.
In response to the evolving regulations, Binance introduced the new domain, specifically tailored to cater to its UK clientele. This domain is intended to adhere to the stringent rules set by the Financial Conduct Authority (FCA), the UK’s regulatory body for financial services. Binance partnered with Rebuildingsociety.com Limited, an FCA-regulated firm, to ensure that its marketing and communication materials comply with the updated regulations.
Binance emphasised that the new domain will provide a range of services that align with the UK regulations. UK users will have access to fiat and cryptocurrency deposits and withdrawals, spot trading, margin trading, NFT markets, Binance Pay, crypto lending, and the ICO platform Launchpad.
However, Binance made it clear that certain services will no longer be available to UK retail users starting from October 8, 2023. These exclusions include gift cards, access to Binance Academy, research resources, feed features, and referral bonuses. The decision to restrict access to referral bonuses is notable, as it aligns with the UK regulations explicitly targeting such incentives.
Binance's renewed focus on the UK market follows its decision in June to withdraw its Financial Conduct Authority (FCA) registration for its UK-based subsidiary. Despite the withdrawal, Binance did not indicate any intention to re-register in the UK. Instead, the company announced its partnership with Rebuildingsociety.com to approve marketing materials under S21 gateway rules.
The UK regulations prompting these actions primarily aim to regulate how crypto companies can promote themselves. The Financial Promotions Regime, which took effect in October, mandates risk warnings and prohibits referral and sign-up bonuses. Violating these rules can result in severe penalties, including possible jail time and potentially unlimited fines.
Binance's move to comply with the Financial Promotions Regime reflects a broader trend in the industry, with various crypto companies adjusting their services to meet increasing compliance requirements. Other companies, including PayPal, ByBit, Luno, and NiceHash, have also announced plans to temporarily reduce services for UK users in response to the regulatory changes.
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