Regulatory Crackdown

Binance, the world’s largest cryptocurrency exchange, has stopped accepting new customers in the UK after regulators cracked down on digital assets companies advertising to British consumers.

The company announced the policy less than an hour before it came into effect late on Monday, after the Financial Conduct Authority last week blocked Binance’s plan to try and navigate the new industry standards.

Challenges to Binance in the UK's Market

The decision deals a blow to Binance's aspirations for UK market expansion, especially in light of the recent enforcement of regulatory guidelines earlier this month.

The set standards are considered some of the most rigorous globally, reflecting the regulator's efforts to bolster consumer protection in response to the previous year's digital asset market downturn and the collapse of companies like FTX.

Only authorised companies can promote cryptocurrency advertisements in the UK.

Failure to comply can result in an unlimited fine and potentially two years in prison.

The rules apply to all companies, whether based in the UK or abroad.

The FCA has issued more than 150 alerts on unauthorised crypto groups’ promotions in the first week of the new regime.

Binance's Response

Binance, claiming to operate without a headquarters, faced regulatory consequences in 2021 when the FCA directed the suspension of all regulated operations in the UK due to the company's failure to address fundamental inquiries.

The exchange had partnered with Rebuildingsociety.com but last week the FCA ruled that the Leeds-based company was forbidden from promoting crypto services in the UK, blocking Binance’s ability to lawfully market itself in Britain.

Binance responded to the new regulation:

“We have disclosed to the FCA that we are in active discussions with another suitable FCA authorised firm to approve our financial promotions as soon as possible,”

Binance provided reassurance that existing customers would retain uninterrupted access to services, while the introduction of new products and services would be temporarily suspended.