Binance Stops New User Signups in UK, Says Needs Time to Comply with Rules on Crypto Ads
In a bid to control the buzz around crypto in the UK, authorities in the UK have deployed a set of rules to oversee crypto-related marketing and advertising.
Binance has been trying to avoid legal troubles in the UK
It wishes to promote its business in the UK but within legal framework
Binance operations have faced probe in the US
The UK passed these rules to regulate crypto ads on October 8
Photo Credit: Binance
Binance, starting this week, is pausing first-time signups in the UK. The reason behind the crypto exchange's decision is that it requires some time to get its operations to comply with UK's laws around crypto marketing and advertisement. The UK is exploring ways to establish itself as a crypto hub. British Prime Minister Rishi Sunak has taken several pro-crypto measures in the recent past to testify to UK's commitment to foster Web3. That being said, the country does not wish to see any financial upheaval unfold because uninformed citizens succumbed to crypto hype and made bad investment decisions.
In a bid to control the buzz around crypto in the UK, authorities there have deployed a set of rules to oversee crypto-related marketing and advertising. These rules came into effect on October 8. These rules allow crypto firms, registered with UK's Financial Conduct Authority (FCA), to review and officially approve their own advertisements. If not, crypto firms can enlist government authorised organisations to give their ads the approvals.
Few weeks ago, Binance partnered Rebuildingsociety.com to get its promotional materials and advertisements green-flagged in the UK. Rebuildingsociety.com, that claims to be a peer-to-peer lending platform, however, was not authorised to approve crypto ads and hence Binance now needs to reevaluate its position. The exchange is scouting for another FCA-authorised firm to approve its ads.
Meanwhile, existing Binance users in Britian who have completed their ‘Investor Declaration and Appropriateness Test', will have access to the services. They, however, will not be allowed to use any new products or services that Binance rolls out before it gets its ad-approving agent.
Founded in July 2017, Binance is the world's largest crypto exchange by trading volume. The company has had some run-ins with the US Securities and Exchange Commission (SEC) and has faced investigations in the US. To avoid facing legal troubles in the UK now, Binance is ready to take some time and complete all legal formalities.
The UK, meanwhile, has maintained a strict stance against exposing its citizens to volatile crypto assets that may cause them financial losses. In May, the country was looking to ban the marketing technique of ‘cold calling' for merchants dealing with cryptocurrencies and insurances.
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