Binance and OKX Adapting to New UK Financial Promotions Regulations

Leading cryptocurrency exchanges Binance and OKX have announced their plans to adhere to the United Kingdom’s new Financial Promotions (FinProm) Regime, which was enacted by the Financial Conduct Authority (FCA) on October 8. The FCA’s initiative aims to ensure fairness, transparency, and integrity in cryptocurrency promotions within the country.

Binance unveiled its compliance measures on October 6, revealing the launch of a new domain specifically tailored for its U.K. users. To achieve compliance, Binance has partnered with the local peer-to-peer lending platform Rebuildingsociety. As of October 8, U.K. retail users accessing Binance will be redirected to this localized domain, showcasing only those products and services permitted under U.K. regulations. These offerings include spot and margin trading, Binance Pay, its nonfungible token (NFT) marketplace, and loan services. Notably, certain features like gift cards, referral bonuses, academy, and research will no longer be available in compliance with the new FCA guidelines. It’s important to mention that these changes exclusively affect retail users in the U.K. and do not impact users who qualify for exemptions under the new FinProm regulations, such as specific institutional and professional investors.

In tandem with Binance, OKX also issued a statement on October 6 outlining its adherence to FinProm compliance. OKX has streamlined its token offerings to approximately 40 assets and prominently displayed risk warnings on its interface. The warnings, strategically placed at the top of OKX’s main page, caution investors about the high-risk nature of cryptocurrency investments, emphasizing the possibility of losing all invested funds. Additionally, OKX has established a dedicated U.K. account on X (formerly Twitter) to inform the public about its products and services that comply with the updated U.K. regulations.

The process of ensuring compliance with the new FinProm rules presents challenges for global crypto businesses. Matt Sullivan, Deputy General Counsel at crypto payment service MoonPay, highlighted the difficulties faced by companies operating on a global scale. He emphasized the need for localized product updates, implementation of new processes, policy adjustments, and company-wide education to meet the stringent regulatory requirements. Sullivan acknowledged the potential for evolving interpretations of certain rules as the industry adapts to the new standards.

Despite these efforts, some crypto firms, including major exchanges like KuCoin and HTX (formerly Huobi), appear to have struggled to comply with the new promotion rules in the U.K. According to official statements from the FCA on October 8, these entities, among 143 others, were listed as “non-authorized firms,” indicating they lacked the necessary permissions to operate in the United Kingdom. The FCA issued a warning advising individuals to avoid engaging with these non-authorized firms, underscoring the importance of adhering to the regulatory framework put forth by the new FinProm regime.

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