Binance, OKX, MoonPay and other cryptocurrency exchanges are working on complying with the new regulatory requirements set in the UK. The regulators in the UK have raised concerns regarding the financial advertisement approach of cryptocurrency enterprises.
On this account, all major trading platforms operating in the region have announced that they are working on incorporating the new regulatory requirements.
United Kingdom’s New Financial Promotions Rules
The new criteria have been set by the Financial Conduct Authority that has enacted the Financial Promotions or FinProm legislature in October this year. These regulations ensure that virtual currency companies ensure fair, clean, and transparent advertisement practices.
The exchange has partnered with a local peer-to-peer trading services provider called RebuildSociety. Investors from the region will be able to interact with the new platform start this year.
Binance UK Complies with All Regulatory Requirements
Binance UK has noted that new account holders are going to access the services and products that are in line with the regulatory requirements. The new platform is offering spot, margin, NFTs, loans, and other services that are in compliance with the FCA regulations.
On this note, Binance is also set to seize services such as gift cards, referral bonuses, research, educational resources, and notification board etc. These changes are applicable to retail consumers in UK only and do not extend to institutional and professional investors.
OKX is also a crypto trading platform operating in the region that has issued a statement regarding the FCA regulatory amendments. The firm announced that it is limiting its total token offerings to 40 and have added risk-warnings added to its user-interface for the benefit of the consumers.
One warning on the front page of the trading platform reads that do not invest in virtual currencies if you are not willing to lose all your money and characterizing cryptocurrencies as high-risk investments.
The platform has also created an official account on X with a promise to advertise products and services that are compliant with UK regulations on social media.
FCA Cracks Down on Non-Regulated Crypto Exchanges
FCA regulators have continued to crackdown against cryptocurrency exchanges that have failed to comply with the regulatory requirements. On this account, FCA officials issued a statement recently maintaining that KuCoin and HTX (Huobi) are promoting their services without regulatory adherence.
The regulator has added both these exchanges in the list of 143 entities that are marked down as unauthorized and not allowed to operate in United Kingdom.
The warning tells the investors that they should avoid dealing with the said trading platforms. Meanwhile, Matt Sullivan deputy general counsel at MoonPay highlights that the process of regulatory compliance is a complicated process on account of global business operations.
He claimed that incorporating FinProm rules requires localization of product and service offerings for UK consumers.
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