The Financial Conduct Authority (FCA) in the United Kingdom has recently imposed restrictions on Binance’s local partner, Rebuildingsociety.com. This move comes as the FCA aims to regulate and control unauthorized financial promotions. According to the regulator’s website, Rebuildingsociety.com, which is Binance’s affiliate in the UK, must revoke any previous approvals granted to unlicensed entities. The FCA has also directed the company to inform its clients that it cannot support content from unauthorized individuals or entities, and it must withdraw any advertisements that promote these services.
The FCA has set a deadline of 5 PM BST on October 11 for Rebuildingsociety.com to comply with the orders. Additionally, the company must submit a report to the authorities before October 13, demonstrating its adherence to these requirements. As of now, Rebuildingsociety.com has not responded to CryptoSlate’s request for comment.
On October 6, Binance introduced a dedicated page designed specifically for its UK customers. Coinciding with this announcement, the firm disclosed its collaboration with Rebuildingsociety.com, an FCA-registered company responsible for approving the exchange’s marketing materials in line with local regulations. Notably, Binance’s subsidiary in the UK had previously withdrawn its FCA registration in June. Although the recent FCA order does not explicitly mention Binance, it emphasizes the exchange’s failure to register with the authority. Interestingly, Binance does not appear on the FCA’s recent list of 143 unauthorized entities.
In a press statement shared with CryptoSlate on October 10, Binance stated that its agreement with Rebuildingsociety.com was submitted to the FCA one week before the implementation of the new regulatory regime. According to Binance, its dedicated page for UK customers has been developed to fully adhere to the comprehensive requirements of the new regulations. Binance also highlighted that the FCA has issued warnings to over 140 firms for violations of the Financial Promotions Regime since its update on October 8.
The FCA’s restriction on Binance’s UK affiliate, Rebuildingsociety.com, and its financial promotion approvals serves as a clear indication of the regulator’s proactive stance towards unauthorized entities. Binance’s lack of registration with the FCA raises questions about its compliance with local regulations. The collaboration with Rebuildingsociety.com seems to be an attempt to address these concerns, with Binance’s dedicated page emphasizing its commitment to meeting the new regulatory requirements. As the cryptocurrency industry continues to evolve, it is crucial for exchanges and their affiliates to prioritize regulatory compliance to foster trust and legitimacy within the financial ecosystem.