The UK’s Financial Conduct Authority (FCA) has imposed restrictions on peer-to-peer lending platform Rebuildingsociety, a company that cryptocurrency exchange Binance has partnered with to comply with the regulator’s marketing regime.
In a notice dated 10 October, the Financial Conduct Authority (FCA). He said Rebuildingsociety has not been authorized to “approve the content of any financial promotion of eligible crypto assets communicated by an unauthorized person” and needs to withdraw any existing approvals. The notice indicates that Binance may no longer have a partner in the UK in compliance with the Financial Conduct Authority (FCA)’s marketing requirements, which came into force on October 8.
The regulator has warned Rebuildingsociety to notify any client – likely including Binance – that it is “not permitted to approve the content of any financial promotion for eligible crypto assets”, withdraw any ads offering approval of financial promotions, and confirm its compliance with the Financial Conduct Act. (FCA) Binance aims to use Rebuildingsociety to allow its UK users to view the exchange’s products and services through a local domain, as the exchange is not registered with the FCA.
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The FCA restrictions came less than 7 days after Binance’s restrictions advertisement A partnership with Rebuildingsociety allows the exchange to market spot trading, non-fungible tokens and other products and services to UK users. Under the FCA regime, the cryptocurrency exchange said it will no longer offer referral bonuses and gift cards.
The marketing system, which took effect on October 8, aims to require companies, including cryptocurrency companies, to provide “clear, fair and not misleading” advertising or risk criminal charges. The Financial Conduct Authority (FCA) added that some firms could receive approval for a January 2024 deadline amid uncertainty surrounding the rules, but it is unclear whether Binance plans to pursue this extension. Companies including OKX and MoonPay have already announced that they plan to comply with FCA rules.
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