In response to the Financial Conduct Authority’s (FCA) new Financial Promotions Regime, cryptocurrency exchange Binance launched a UK-specific domain on Sunday. The move is part of Binance’s regulatory commitments to promote responsible trading and ensure uninterrupted service for its users in the UK.
The newly launched domain offers a range of services including crypto and fiat withdrawals, spot and margin trading, NFT marketplace, and Binance Pay. To align with the FCA’s regulations, which include a ban on incentives like referral bonuses, Binance has discontinued services such as referral bonuses, research and academy, and gift cards in the UK. All marketing materials for these services are approved by partner Rebuilding Society.
Alongside Binance, OKX has also adapted to the new rules by reducing its token offering to over 40 assets, issuing risk warnings, and launching a UK-specific Twitter account.
Meanwhile, the FCA’s tightened rules have led to possible severe penalties for other digital asset firms operating in the UK. Huobi, KuCoin, and 147 other firms are under scrutiny for unapproved marketing. The new regulations require cryptoasset service providers to display risk warnings, enforce a 24-hour cooling-off period for new customers, and prohibit ‘refer a friend’ bonuses. To engage UK clients, these firms must be registered with the FCA.
In response to these stringent regulations, several firms including Luno and PayPal (NASDAQ:) have made necessary operational adjustments to comply with the FCA’s requirements.
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