The world’s largest crypto exchange, Binance, continues to battle regulatory woes in the UK market, forcing it to halt onboarding new British users. Binance issued a Monday, October 16 statement confirming the immediate suspension of signing new British customers to its platform.
The Monday evening statement urged the existing users to seek updates before investing in digital assets within the Binance platform. The drastic changes conveyed by Binance come a week after the UK’s watchdog, the Financial Conduct Authority (FCA), issued new guidelines obligating all firms offering crypto-related services to comply with the registration requirements.
FCA Ban on Rebuildingsociety.com Prompt Binance to Suspend New Users Registration
The FCA directed the crypto firms to seek marketing approval from the FCA-authorized firms. The financial watchdog directed the crypto firms to furnish customers with fair warnings regarding the risks inherent in crypto investments.
The suspension of onboarding UK customers arose from the fact that Binance leveraged Rebuildingsociety.com to secure approval of promotions and advertisements. Unfortunately, the FCA in the previous week included the firm on the list of regulated companies prohibited from ever promoting digital asset services in the UK.
The Changpeng Zhao-led crypto exchange regretted the twist in losing Rebuildingsociety.com through the FCA ban. Nonetheless, the crypto exchange Binance portrayed optimism in finding a new FCA-authorized approver to restore onboarding new customers in the UK market.
Binance added that it would comply with the FCA requirements by ensuring users avoid harm related to the latest developments. It reiterated that it was exploring a suitable FCA-authorized firm that it would engage to approve its financial promotions.
Binance Struggle in United Kingdom Crypto Market
The statement by Binance affirms the crypto exchange struggle in the UK market. Earlier in March, the Zhao-led exchange terminated the sterling pound-based deposit and withdrawal transactions. The drastic announcement arose from losing the European banking partner – Paysafe Payment Solutions.
The suspension of British Pound deposits and withdrawals was conveyed to Binance in response to Paysafe’s statement. The latter confirmed the ending of the embedded wallet solution offered to Binance within the European economic area.
Paysafe considered the move a strategic review with both parties involved in mutually implementing the service termination. The orderly process would take till May to guarantee a fair process.
Binance struggle in the UK underscores the crypto exchange is facing mounting challenges in various jurisdictions. In the US, Binance is battling a lawsuit initiated by the Securities and Exchange Commission (SEC) alleging it offered unregistered securities and cominfling users funds.
Binance Pursuit of European Market Slowed by Regulatory Hurdles
Binance had withdrawn its bid for a crypto license in Germany in July, citing the strict regulatory requirements. The crypto exchange exited the Netherlands following the regulator’s decision to deny the permit, citing noncompliance with the anti-money laundering laws.
Binance woes are endless in Europe, with the French authorities opening preliminary investigations alleging it was illegally canvassing clients and facilitating money laundering.
Binance pursuit of presence in the Belgium digital assets market has been fictitious engagements. The crypto exchange only resumed the provision of services in the country last month following a three-month suspension for alleged violation of terrorist financing and anti-money laundering laws. The temporary pause allowed Binance to comply with legal requirements.