In a recent move to tighten its grip on cryptocurrency advertising, the UK’s Financial Conduct Authority (FCA) has introduced stringent regulations that have directly impacted Binance’s UK operations. Just days after Binance announced its partnership with Rebuilding Society to ensure compliance with financial promotion rules, the FCA has stepped in, reshaping the crypto advertising landscape.
Rebuilding Society, Binance’s chosen partner for adhering to the UK’s financial promotion standards, has been directed by the FCA to retract any permissions previously granted to unlicensed parties for financial advertising. This move comes as the FCA intensifies its efforts to regulate the rapidly evolving cryptocurrency market. As of October 8, 2023, the FCA’s new rules mandate that all cryptocurrency advertising across digital platforms, including websites and social media, must strictly adhere to their guidelines. Non-compliance could lead to criminal prosecution under the UK’s Financial Services and Markets Act 2000.
Interestingly, while Binance had recently highlighted the significance of its collaboration with Rebuilding Society in a blog post, emphasizing its alignment with the FCA’s regulations, this recent development has thrown a wrench in their UK strategy. The FCA’s intervention means that Rebuilding Society can now only approve promotional content for FCA-licensed crypto service providers.
Meanwhile, other crypto giants like Coinbase and OKX have been leveraging Archax’s backing for their UK communications, allowing them to market on behalf of other crypto entities. However, the new regulations have led to UK users losing access to certain features, such as news feeds on Binance’s international website and the Coinbase app.