Binance will follow new UK regulations despite previous withdrawal
Customers in the United Kingdom now have a streamlined portal to legally access services.
On October 6th, Binance announced the introduction of a new subpage to better serve its consumers in the United Kingdom in light of recent regulatory changes in that country.
The firm has announced that www.binance.com/en-GB would be available to UK citizens in accordance with the country’s revised Financial Promotion Regime.
Binance has said that its UK customers would be restricted to using just those features that are lawful in the UK. Binance offers a wide variety of services, including the ability to deposit and withdraw both fiat and cryptocurrency, as well as spot trading, margin trading, conversions, NFT markets, crypto loans, Binance Pay, and an ICO platform called Launchpad.
Users in the United Kingdom will not have access to Binance’s gift cards, reference websites, or Binance Feed, the exchange’s news aggregator. Referral incentives are a key feature that U.K. consumers will no longer have access to due to new laws.
In its latest statement, the business did not indicate that it plans to register in the United Kingdom. Instead, Binance said that it has collaborated with the FCA-registered company Rebuildingsociety.com to have its promotional materials reviewed and approved in accordance with S21 gateway regulations.
Binance took this decision because of new rules in the United Kingdom that limit advertising by cryptocurrency businesses. In particular, the new regulations prohibit any kind of referral or sign-up incentive and require risk warnings. Potential punishments for rule breaking are severe and may include prison time and infinite fines.
On October 8th, new regulations for the Financial Promotion Regime will go into force. Binance has announced that the updated services would go live on that day.
As a result of the increasingly stringent compliance standards, a number of crypto firms have pulled out of the UK market. This month, many cryptocurrency companies, including PayPal, ByBit, Luno, and NiceHash, have announced that they would temporarily scale up their services for customers in the United Kingdom.