Major global cryptocurrency exchanges such as Binance and OKX have announced that they are working to comply with new financial promotion regulations in the UK.
The UK’s Financial Conduct Authority (FCA) issued the country’s new Financial Promotion Regime (FinProm) on October 8 for cryptocurrency companies, aiming to ensure fair, clean and transparent cryptocurrency promotion.
Binance Announce On October 6, it launched a new domain for users in the UK and partnered with local peer-to-peer lending platform Rebuildingsociety.
In line with the compliance update, Binance retail users in the UK will be redirected to a local domain starting October 8, which will only display permitted Binance products and services in compliance with UK regulations. These products will include spot and margin trading, Binance Pay, non-fungible token (NFT) market, loans and more.
However, in accordance with the new FCA rules, Binance will stop offering products such as gift cards, referral rewards, gift cards, academies and research, the announcement notes.
The changes will only apply to UK retail users and will not affect users who are exempt under the new FinProm rules, including some institutional and professional investors.
OK x Issued Statement on FinProm Compliance also on October 6. The exchange said it has reduced its token offerings to about 40 assets and has adopted eye-catching risk warnings on its interface. One such warning is located at the top of OKX’s homepage, inviting investors to take a few minutes to learn more about the risks of investing in cryptocurrencies. The warning stated the following:
“Do not invest unless you are prepared to lose all the money you invest. This is a high-risk investment and you should not expect protection if something goes wrong.
In addition, OKX has launched a dedicated UK account on X (formerly Twitter). The company promised to mention products and services that would be compliant with the new UK regulations on its social media page.
Cryptocurrency payment service MoonPay is another industry company working to comply with the new FinProm rules. According to Matt Sullivan, deputy general counsel for MoonPay, one of the biggest challenges in ensuring compliance with the rules relates to managing a global business.
Related: The UK Financial Conduct Authority gives a “final warning” to unregistered cryptocurrency companies about complying with the advertising regime
“The challenge arises in ensuring compliance with all of these new requirements in the UK, while operating across the globe,” Sullivan said in a statement to Cointelegraph, adding:
“Ensuring compliance with FinProm rules requires local product updates, implementation of new processes and policies, as well as education throughout the company. […] “There may be a period of ‘stabilization’ and initial views on the application of certain rules may evolve over time.”
It appears that some cryptocurrency companies are struggling to comply with new promotion rules in the UK. According to official data released by the Financial Conduct Authority (FCA) on October 8, major cryptocurrency exchanges such as Q Queen And htx (formerly Huobi) may have been promoting their services without permission. The companies were listed among 143 entities described as “unlicensed companies” that are not permitted to operate in the UK.
A total of 143 new entities were added to the warning list, including major exchanges, such as HTX and Huobi-owned KuCoin. The list of warnings doesn’t reveal much except “You should avoid doing business with this company.”