UK Regulator Deals Blow To Binance's UK Expansion Plans

The UK's Financial Conduct Authority (FCA) has imposed limitations on the peer-to-peer lending platform, Rebuildingsociety, the same platform that had collaborated with crypto exchange Binance BNB/USD to adhere to the FCA's advertising standards.

The FCA on Oct. 10 released a notice stating that Rebuildingsociety lacked the authorization to "approve the content of any financial promotion for a Qualifying Cryptoasset for communication by an unauthorized person."

This development might indicate that Binance could be without a UK partner that aligns with the FCA's advertising guidelines, which were implemented on Oct. 8.

This evolving landscape in the crypto world will be a topic of interest at Benzinga's Future of Digital Assets conference on Nov. 14.

Rebuildingsociety has been instructed by the FCA to inform its clientele, which likely includes Binance, that it cannot "approve the content of any Financial Promotion for a Qualifying Cryptoasset."

Furthermore, they must retract any advertisements that offer to approve such promotions and must confirm their adherence to these rules in writing to the FCA.

Binance's intention behind partnering with Rebuildingsociety was to offer its UK-based users a localized domain to access its offerings, given that the exchange isn't FCA-registered.

Interestingly, this FCA action comes just a week after Binance publicized its alliance with Rebuildingsociety.

This partnership was meant to promote various services, including spot trading and nonfungible tokens, to the UK audience.

As part of its commitment to the FCA's guidelines, Binance had also declared that it would discontinue offering referral bonuses and gift cards.

The FCA's new advertising standards, effective from Oct. 8, mandate crypto firms to ensure their advertisements are "clear, fair and not misleading," failing which they could face legal repercussions.

While the FCA has hinted at a potential approval extension until January 2024 for some entities, it remains uncertain if Binance aims to avail of this.

Other companies, such as OKX and MoonPay, have already confirmed their intention to abide by the FCA's regulations.

Read Next: Caroline Ellison Drops Bombshell: Bankman-Fried Wanted To Be President

Meet and engage with transformative Digital Asset and Crypto business leaders and investors at Benzinga's exclusive event - Future of Digital Assets. Tickets are flying-  get yours!

Photo: Unsplash