Madrid, October 16 (European Press) –
Crypto-asset platform Binance will temporarily stop accepting new clients in the United Kingdom starting Monday to prevent them from using its services after that country’s Financial Conduct Authority (FCA) ruled on October 10 that Binance’s partner, Rebuildingsociety.com (REBS), cannot be allowed to… With advertising campaigns using crypto assets.
The regulator had previously said that the new financial promotion rules that came into effect on October 8, which also affect the cryptocurrency sector, aim to provide “clear, fair and not misleading” advertising systems to consumers, warning that non-compliance could lead to criminal and economic liability. .
Binance, which is not an entity authorized by the Financial Conduct Authority (FCA) to approve its own financial advertisements, has teamed up with REBS to do so for the operator. However, the Financial Supervision Authority warned that it cannot approve the advertising of crypto assets, and in addition, it has to cancel licenses already granted in this regard.
For its part, Binance said: “We are working closely with the Financial Conduct Authority (FCA) to ensure that our users are not harmed by these events and are trying to find another FCA-authorized company to approve our financial promotions as soon as possible.”
British users who are already registered will continue to access the platform’s services if they complete the investment test and declaration of liability. However, they will not be able to contract on new products or services until Binance finds a new partner who will “green light” their announcements.
background
British digital payments company Paysafe had already announced in March that it would stop providing coverage for Binance’s UK operations. The measure took full effect in May.
Likewise, Paysafe also announced in June that it will stop supporting Binance for euro-denominated transactions starting September 25.
Therefore, it can no longer carry out operations through the Single European Payments Area (SEPA) network after a Paysafe spokesperson reported that after conducting a “strategic review,” his company and Binance were “working to jointly implement the purpose of this service in an orderly and fair manner.”
Binance reported that they would be looking for an alternative partner and confirmed that “deposit and withdrawal methods for other fiat currencies nor buying and selling of crypto assets on Binance.com will not be affected.”
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