The United Kingdom’s Financial Conduct Authority (FCA) has taken action against Binance’s local partner, Rebuildingsociety.com. The FCA has prohibited Rebuildingsociety.com from approving financial promotion content from unauthorized individuals or entities. The regulator has instructed the company to revoke any previous approvals granted to unlicensed entities. In addition, Rebuildingsociety.com must inform its clients that it cannot endorse content from unauthorized sources and must retract any advertisements promoting its services. The company has until 5 PM BST on October 11 to comply with these orders and must provide evidence of compliance before October 13.
Binance, one of the world’s largest cryptocurrency exchanges, recently launched a dedicated page for its UK clientele. As part of this initiative, the company entered into a strategic collaboration with Rebuildingsociety.com, an FCA-registered firm responsible for approving the exchange’s marketing materials in accordance with local regulations. It is worth noting that Binance’s subsidiary in the UK had previously withdrawn its FCA registration in June. While the recent FCA order does not explicitly mention Binance, it highlights the exchange’s lack of registration with the authority. Interestingly, Binance does not appear on the FCA’s list of 143 unauthorized entities.
Binance’s Compliance with Regulations
According to Binance, the agreement with Rebuildingsociety.com was shared with the FCA one week before the implementation of the new regulatory regime. The exchange claims that its dedicated page for UK customers has been built to meet the specific requirements of the updated regulations. It is important to note that the FCA has issued warnings to more than 140 firms for breaching the Financial Promotions Regime since its recent update on October 8.
No Response from Rebuildingsociety.com
As of press time, Rebuildingsociety.com has not provided any comments or responses to inquiries from CryptoSlate regarding the FCA’s restrictions. The impact of these restrictions on the partnership between Binance and Rebuildingsociety.com remains unclear. It is crucial for both companies to address the regulatory concerns raised by the FCA and ensure compliance with the relevant regulations in order to maintain their operations in the UK market.
The FCA’s action against Rebuildingsociety.com serves as a reminder of the regulatory challenges faced by Binance in the UK. The exchange’s decision to withdraw its FCA registration earlier this year has raised questions about its commitment to compliance. Moving forward, Binance needs to actively engage with regulatory authorities and address any concerns to establish itself as a trusted and compliant platform for UK customers. Failure to do so may have serious consequences for its operations in the UK market.
The FCA’s restrictions on Binance’s local partner, Rebuildingsociety.com, highlight the importance of complying with regulatory requirements in the UK. The collaboration between Binance and Rebuildingsociety.com raises concerns about Binance’s registration status and its commitment to regulatory compliance. It is vital for both companies to address the FCA’s concerns and ensure full compliance with regulations to maintain their presence in the UK market.