Binance Continues UK Operation But Won't Accept New Customers For Now

Binance, the world's largest crypto exchange by trading volume, announced that it will not accept new customers in the United Kingdom and has suspended new users' access to its platform and apps in the region.

The exchange, in a blog post, said it will stop accepting new users based in the region starting Monday. The latest development momentarily puts off Binance's ambition for global domination by returning to one of its biggest markets outside the United States.

The exchange also clarified that old customers in the U.K. are not affected, but this latest announcement underlined that it will not introduce new products or services.

"Binance encourages existing users to read the 'Info' tab before investing in a specific crypto asset on the Spot Exchange to further their knowledge of the specific crypto asset," the blog stated. "Existing UK users will retain the current services available (providing they have completed their Investor Declaration and Appropriateness Test) but any new products and services will not be made available during this interim period," it added.

The exchange also shared that it is currently looking for a partner authorized by the Financial Conduct Authority (FCA). But since it has none at the moment, temporary restrictions will take effect along with the new U.K. regulations.

"Binance is currently looking for a new FCA-authorised approver. However, there will be some temporary restrictions coming into effect on our Platform (i.e. www.binance.com/en-GB and latest version of our Mobile App) during the period until Binance onboards with a new FCA authorized approver and has its financial promotions reapproved," the exchange said.

Binance's recent move was rooted in the development of the country's financial promotion regime, which since Oct. 8 has expanded to include crypto asset service providers like exchanges, regardless of where they are based.

All cryptocurrency exchange platforms are now required by the new regulation to show clear risk warnings to consumers in the U.K. and meet technical standards, including seeking approval from an authorized regulator for all communications.

Failure to comply with the new set of regulations could include being added to the FCA's list, fines, and even prison time.

It may be recalled that Binance had worked with Rebuildingsociety.com Ltd (REBS), an FCA-authorized firm, to "review and approve our UK financial promotions in compliance with the new rules."

However, last week, the FCA "imposed legally-binding requirements on REBS, which meant that REBS was no longer able to approve financial promotions and with effect from 5 pm on 11 October 2023 REBS had to withdraw any existing approvals of financial promotions on behalf of any cryptoasset businesses," which included Binance.