The Financial Conduct Authority (FCA) in the United Kingdom has taken action against Binance’s local partner, Rebuildingsociety.com, by restricting its ability to approve financial promotion content from unauthorized individuals or entities. This move highlights the ongoing regulatory challenges faced by Binance in the UK market.
According to information posted on the FCA’s website, Rebuildingsociety.com must revoke any prior approvals granted to unlicensed entities. Additionally, the company is required to inform its clients that it cannot endorse content from unauthorized sources and must retract any advertisements promoting its services related to financial promotion approvals. The FCA has given a deadline of 5 PM BST on October 11 for Rebuildingsociety.com to comply with these orders. The company is also required to send a written confirmation of compliance to the FCA before October 13.
Rebuildingsociety.com is Binance’s affiliate in the UK and had been working in collaboration with the cryptocurrency exchange to ensure compliance with local regulations. Binance had previously withdrawn its FCA registration in June, leading to questions about its regulatory status in the UK. While the FCA order does not explicitly mention Binance, it does highlight the exchange’s lack of registration with the authority.
Binance has stated that its agreement with Rebuildingsociety.com was shared with the FCA a week prior to the implementation of the new regulatory regime. The exchange emphasizes that its dedicated page for UK customers has been designed to meet the detailed requirements of the updated regulations. However, Rebuildingsociety.com has not responded to requests for comments on this matter.
This latest development further adds to the ongoing scrutiny faced by Binance and its operations. The fact that the exchange does not appear on the FCA’s list of unauthorized entities raises questions about its compliance with UK regulations. Binance will likely face increased pressure to address these concerns and provide clarity on its regulatory stance in order to continue serving its UK customers.
The FCA’s restrictions on Rebuildingsociety.com’s approval of unauthorized financial promotion content highlights the challenges faced by Binance in the UK market. This move further emphasizes the need for the exchange to clarify its regulatory status and address concerns raised by regulatory authorities. As the regulatory landscape continues to evolve, Binance must proactively engage with regulators to ensure compliance and maintain the trust of its customer base in the UK.
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