Binance Halts New UK Registrations in Response to Cryptocurrency Advertising Regulations

The cryptocurrency trading platform, Binance, recently announced its decision to suspend new registrations from the United Kingdom. This move is in response to the newly established cryptocurrency advertising regulations in the country, which came into effect on October 8.

Under these regulations, businesses affiliated with the U.K.'s Financial Conduct Authority (FCA) now have the authority to approve their own advertising content. In the absence of such registration, they must seek approval from recognized entities. Binance had previously collaborated with Rebuildingsociety.com to ensure the compliance of their advertisements in the U.K. However, the FCA recently clarified that Rebuildingsociety.com lacks the necessary authorization to approve cryptocurrency promotions.

Binance has expressed its commitment to protecting its user base and emphasized its active collaboration with the FCA. The company's main goal is to prevent any disruptions for its users. They are currently in discussions to collaborate with an entity authorized by the FCA to oversee their financial promotions promptly.

For existing U.K.-based Binance users, services remain accessible, provided they have completed the necessary "Investor Declaration and Appropriateness Test." However, the company clarified that these users would be barred from accessing new features and services during this transitional phase.

Meanwhile, Binance's U.S. operations have also faced regulatory challenges. The U.S. Securities and Exchange Commission (SEC) has expressed concerns about Binance.US, particularly regarding how they manage client assets. The SEC's concerns were significant enough that they sought legal permission for a direct examination of Binance.US's software.

However, their request for an immediate review was declined by a federal magistrate judge. Adding to Binance's regulatory challenges, another judge rejected the SEC's request to investigate the tech infrastructure of Binance's U.S. division, dealing another setback to the watchdog's efforts.