(Reuters) – Cryptocurrency exchange Binance announced on Monday its decision to stop accepting new customers in the United Kingdom due to new regulations regarding promotions from international digital asset firms in the country.
Starting from 5 PM local time (4 PM GMT), individuals in the UK will no longer be able to register on Binance’s platform, as stated on the company’s website.
Given the recent collapses of prominent cryptocurrency firms, the UK government has adopted a strict approach towards cryptocurrency regulation. Concerns over the utilization and storage of customer deposits in an industry that lacks proper regulation have prompted these measures and have become a significant focus globally.
The Financial Conduct Authority (FCA) implemented new guidelines in relation to cryptoasset promotions on October 8.
Last week, the UK’s financial regulatory agency announced the suspension of peer-to-peer platform rebuildingsociety.com’s approval of financial promotions for Binance and other crypto asset companies, shortly after Binance unveiled its partnership with the platform.
In its decision notice, the FCA stipulated that unregistered cryptoasset firms cannot promote cryptoassets to UK consumers without the endorsement of an authorized company.
“We are collaborating closely with the FCA and are actively seeking another FCA-approved firm to authorize our financial promotions as soon as possible,” Binance stated.
Reporting by Manya Saini in Bengaluru; Editing by Devika Syamnath
