By Alisha Houlihan for AMLi
British regulators have put the brakes on Binance’s attempts to reach out to UK consumers in the latest crackdown on the crypto industry.
Binance, the world’s largest cryptocurrency exchange known for its past conflicts with The Financial Conduct Authority (FCA), attempted to adapt to the recently introduced industry standards by forming an alliance with a locally regulated company on Sunday.
The FCA on Tuesday included Rebuildingsociety.com, Binance’s Leeds-based partner, on its list of regulated companies prohibited from promoting crypto services in the UK, the Financial Times reports.
This development presents a significant setback to Binance’s expansion ambitions within the UK market.
In 2021, the FCA had already directed Binance to cease all regulated activities in the UK due to its failure to respond to basic inquiries.
The recent rules stipulate that promoting crypto assets to UK customers without proper approval can lead to an unlimited fine and, potentially, up to two years in imprisonment. These rules apply universally to all companies, whether they are based in the UK or abroad.
It is believed within three days of their enactment, the FCA issued over 150 warnings to unregistered or unauthorised companies, including exchanges like Huobi and KuCoin.
The FCA announced on its website that Rebuildingsociety.com had until the end of Wednesday to withdraw all crypto-related promotions.
In response, it is “disappointing we have had a restriction imposed on us, and we are working to remove it,” Rebuildingsociety.com said, adding that it intended to appeal against the decision.
Binance said it had “invested an enormous amount of time and resources” to ensure it is incompliance with the new FCA requirements.
A digital assets specialist at Addleshaw Goddard, Lisa Lee Lewis revealed “The FCA has set down a firm marker for crypto firms about preventing crystallising risks and intervening early enough to prevent harm.”
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