The world’s largest cryptocurrency exchange, Binance, has stopped accepting new customers in the UK following recent regulatory actions. This comes after the UK’s Financial Conduct Authority blocked Binance’s plan to market crypto services to British consumers last week.
The move aligns with tough new standards introduced in the UK earlier this month, requiring crypto companies to be authorized before promoting digital asset services. Unapproved promotions can lead to unlimited fines and potential jail time. Binance, with no official headquarters, ran afoul of the FCA last year and was ordered to cease regulated activities.
Though existing Binance users can still access services, no new products will be offered while the company seeks approval. This prevents Binance from expanding in the UK market as intended. The company stated it is in discussions with an authorized firm to approve promotions soon.
This development marks the latest setback for Binance in 2022 amid lawsuits from US regulators and declining market share. The exchange previously expressed interest in gaining UK authorization but has yet to confirm reapplying.
The FCA’s crypto promotion rules apply to all companies globally and have already prompted over 150 violation alerts in the first week. The clampdown signifies the UK’s stringent stance on consumer protection following volatility and failures across the crypto industry.
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