Binance, the world’s largest cryptocurrency exchange, appears to have hit another snag in the UK.
As per the latest developments, the company is yet to allow new users in the UK to use its services.
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The cause of action is the Financial Conduct Authority (Financial Supervision Authority) The new rules took effect on October 8.
🔸BINANCE- Effective 16 October 2023 at 5pm UK time, BINANCE will stop accepting new users in the UK
– * Walter Bloomberg (@DeItaone) October 16, 2023
New FCA rules hold Binance back
The rules stipulate that unregistered cryptocurrency platforms must work with a company authorized by the Financial Conduct Authority (FCA) for marketing purposes.
Under this rule, the Exchange has agreed with Rebuildingsociety.com Ltd (REBS) to conduct this business.
However, on October 10, this particular platform lost its green light license for financial promotion. As a result, Binance has suspended new registrations in the region.
Meanwhile, existing users can still access their accounts without any problems.
However, they will not be able to access new products and services until this issue is resolved.
One In a press release Binance said
“Binance is currently looking for a new FCA authorized certifier. However, some temporary restrictions will be in place on our platform (i.e. www.binance.com/en-GB and the latest version of our mobile app) during the period Until Binance comes on board with a new FCA approved certification body and re-approves Financial Promotions.”
The recent action by the Financial Conduct Authority (FCA) has not only put Binance in trouble, but other platforms as well. Cryptocurrency exchanges KuCoin and HTX (formerly known as Huobi) have also come under the jurisdiction of the regulator.
The Financial Conduct Authority (FCA) has also added these exchanges to its warning list of companies operating without a license.
This effectively means that customers of these platforms will not be eligible for financial compensation in the event of their bankruptcy.
Binance’s problems with regulators are growing
The latest issue with FCA rules isn’t the only issue the exchange has had with regulators so far.
The first major blow came from the US regulator, the Securities and Exchange Commission (SEC).
Binance, its CEO Changpeng Zhao, and Binance.US, its US arm, have been sued by the Securities and Exchange Commission for illegally offering unregistered securities and providing their services to clients in the US.
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In the latest development on this front, CZ and Binance have gone to court to have the case dismissed.
In their filing, they argue that the SEC does not have exclusive jurisdiction over cryptocurrency markets, as is contained in all proposals being considered by the US Congress.
According to the advertisement,
“The SEC now seeks to expand its jurisdiction and has brought this action against, among others, Binance Holdings Limited (“BHL”) and Changpeng Zhai.”
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