UK Regulators Impose Ban on Binance Partner for Issuing Crypto Ads
Financial Conduct Authority (FCA) has imposed crypto advertisement restrictions on Binance’s partner Rebuildingsociety. The financial regulatory agency of the UK updated its advertisement requirement criteria for virtual currency firms.
On this account, some of the crypto firms operating in the region partnered with local companies to remain compliant with the new regulations. The UK wing of Binance partnered with Rebuildingsociety in order to complete the marketing obligations as per updated FCA rules.
FCA Issues a Warning Notice to Rebuildingsociety
However, FCA has issued a notice stating that Rebuildingsociety does not have the authorization to promote content regarding financial services originating from unauthorized persons.
At the same time, the notification maintained that the firm needs to withdraw any existing approvals. This notification means that Binance does not have an advertisement partner in UK that allows the firm to comply with FCA regulations.
Binance to Face Regulatory Problems in the UK
FCA officials have directed Rebuildingsociety to inform its clients that it does not have the authorization to approve content related to Financial Promotion for Qualifying Cryptoasset. Binance is rendering services of the platform in question in order to become compliant with the updated advertisement rules issued by FCA in October.
However, the trading platform can face issues with the regulators in the region as it is not registered with FCA. Binance partnered with Rebuildingsociety less than a week ago leading to offer services such as spot trading, NFTs, and other crypto-related products and services.
However, the firm halted gift card and referral bonus options to adhere to the FCA regulations. The updated marketing regulations of FCA mandate that crypto entities not provide misleading, ambiguous, and vague advertisements that can lead to criminal charges.
The regulator has granted an extension to crypto enterprises till January 2024 on account of uncertainty concerning the new regulations. However, Binance officials have not confirmed if they will opt for that extension.
FCA Extends Monitoring Against Non-Authorized Crypto Ads
Companies that are marketing cryptocurrency assets in UK hailing from the region or outside must comply with the advertisement rules set by FCA.
On the same day, the regulators issued a list of 146 virtual currency firms that were still non-compliant. The regulatory agency has also issued an alert to the social media companies, search engines, and application services providers to monitor for unregulated and unauthorized virtual currency businesses.
The agency has retained that the aforementioned services providers run the risk of participating in money laundering under POCA for not delisting said firms. It entails that online services providers are to monitor all virtual asset organizations that are running blockchain-based services advertisements directed toward consumers in the UK.
An ad from a non-compliant firm will be considered illegal content as per online safety bill. FCA officials are working with Ofcom to monitor the sector.
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