The British Financial Conduct Authority (FCA) has done this limited Binance’s local affiliate, Rebuildingsociety.com, prohibits approving promotional financial content from “unauthorized” individuals.
According to information on the regulator’s website, Binance’s UK subsidiary Rebuildingsociety.com must revoke all previous approvals granted to unlicensed entities. The FCA further ordered the company to inform its customers that it cannot endorse content from unauthorized persons or entities and that it must withdraw any advertisements promoting its services to authorize financial promotions.
Rebuildingsociety.com must comply with the above orders by 5pm BST on October 11. The company must also write to the authorities before October 13, certifying that it has met these requirements.
Rebuildingsociety.com has not yet responded Crypto Slates request for comment as of press time.
Does this affect Binance?
On October 6, Binance unveiled a special page tailored to its UK customer base. In addition, the company announced a strategic partnership with Rebuildingsociety.com – an FCA-registered company tasked with ensuring the approval of the fair’s marketing materials in accordance with local regulations.
Before the announcement, Binance’s UK subsidiary had revoked its FCA registration in June.
While the current FCA order does not explicitly mention Binance, it underlines the exchange’s lack of registration with the authority. Interestingly, the Changpeng Zhao-led crypto exchange does not appear on the regulator’s recent list of 143 unauthorized entities.
In a press statement dated October 10 shared with CryptoSlateBinance said the agreement with Rebuildingsociety.com was shared with the FCA a week before the start of the new regulatory regime.
According to the company, the dedicated page for its UK customers has been built to meet the detailed requirements of the new regulations. It added:
“The FCA has issued warnings against more than 140 firms for breaches of the Financial Promotion Regime since it was updated on October 8. The fact that Binance is not among these companies is a testament to the processes and procedures it has implemented to meet the requirements.”
Binance declined to comment on the restrictions imposed on its affiliate.
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