Binance has ceased accepting new users in the UK as it seeks a partner to comply with recently implemented crypto asset promotion regulations.
The crypto giant announced that it stopped onboarding new UK customers at 5 PM on Monday. According to rules from the Financial Conduct Authority (FCA) introduced earlier this month, firms looking to promote crypto assets in the UK must be authorized or registered by the FCA, or have their marketing approved by an authorized entity.
As an unregulated overseas firm, Binance initially partnered with FCA-authorized firm Rebuildingsociety.com to evaluate and approve its financial promotions in line with the new regulations. However, the FCA indicated last week that Rebuildingsociety.com lacked the necessary license to perform this task.
Binance stated, “We are working closely with the FCA to ensure that our users are not harmed by these developments and are looking to find another suitable FCA authorized firm to approve our financial promotions as soon as possible.”
Historically, Binance has faced regulatory challenges in the UK. In 2021, it lost access to the Faster Payments system after the FCA ordered it to halt regulated activities in the country. Earlier this year, the exchange had to stop sterling deposits and withdrawals after its partner for that service, Paysafe, severed ties.
In the US, Binance and its CEO Changpeng Zhao are currently embroiled in a lawsuit with the SEC over alleged violations of securities laws.