Aaryamann Shrivastava
FXStreet
- Binance confirmed in a blog post that starting October 16, no new UK customers will be accepted.
- The regulatory body in the UK barred the authorized firm Rebuildingsociety.com Ltd from functioning, resulting in the development.
- The FCA has been cracking down on the digital asset industry, mandating the collection of information about crypto asset transfers.
Binance has had a tough year when it comes to dealing with regulatory hurdles across the globe. The latest comes in the form of a UK regulatory hurdle, that has caused the exchange to stop accepting new customers in the jurisdiction.
Read more - UK passes bill to recognize crypto as “regulated financial activity”, boosts adoption in Europe
Binance UK takes a break
Binance, in a blog post, announced that starting October 16, the crypto exchange would stop accepting new customers in the United Kingdom. The decision comes after the UK’s Financial Conduct Authority (FCA), the regulatory body in charge of the financial sector in Britain, imposed legally binding requirements on REBS, a company set up to promote outside crypto exchanges to UK customers.
REBS, short for Rebuildingsociety.com Ltd, was a firm authorized by the FCA to allow unregulated overseas firms like Binance to promote their crypto businesses in the country. However, on October 10, the FCA imposed legally binding requirements on REBS, resulting in the firm ending its contracts with the companies it was providing promotional services to, including Binance.
Binance announced that it is currently looking for a new FCA-authorized approver; and existing UK users will retain the services currently available to them.
Crypto and UK
The United Kingdom recently increased regulation governing the transfer of crypto assets. Earlier in August, the FCA mandated the collection of information about crypto asset transfers, which came into effect last month.
The decision was part of the “Travel Rule” established by the Financial Action Task Force, which was intended to prevent money-laundering by organized criminals using cryptocurrencies.
In addition, the UK passed a bill back in June this year recognizing crypto as a “regulated financial activity”. While this opened up avenues for the industry in the country, it also made it tougher for unregulated businesses to operate.
Read more - UK regulatory body mandates collection of information about cryptoasset transfers from September 1
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