Crypto exchange Binance recently announced that it would stop accepting new users from the UK, following increasingly stringent regulatory oversight in the country nicknamed the Black Country.
Decrypt quoted information from the company's website, that starting at 17.00 UK time, Binance stopped accepting new users who wanted to register on the crypto platform.
The trigger for Binance's decision was the move by the British financial supervisory authority, the Financial Conduct Authority (FCA).
The agency issued new regulations last week that require crypto companies to register with financial regulators and obtain their marketing approval from companies authorized by the FCA.
Binance said on Monday that it is seeking new FCA-authorized approvers so it can comply with the rules and resume accepting customers.
“We are working closely with the FCA to ensure our users are not harmed by this development and are seeking appropriate approvers authorized by the FCA to approve our financial promotions as soon as possible,” added Binance, as reported by Decrypt in a recent article.
Binance has used the services of Rebuildingsociety.com for the approval of its promotional and advertising materials in the UK.
However, the FCA recently included Rebuildingsociety.com on its list of regulated companies prohibited from promoting crypto services in the UK, forcing Binance to look for alternative solutions.
In response, Binance issued a statement on Monday, expressing its commitment to ensuring user security and compliance.
The crypto exchange stated that they are actively seeking a new FCA-authorized firm to oversee the approval of their financial promotions.
Binance emphasized that it is working closely with the FCA to minimize any potential negative impact on their users due to this development.
The challenges facing Binance in the UK have continued to increase. This year, the exchange stopped pound sterling deposits and withdrawals, and lost its European banking partner, Paysafe Payment Solutions.
Paysafe cited a strategic review as the reason for their decision to discontinue offering their wallet solution to Binance in the European Economic Area (EEA), signaling a broader change in the regulatory landscape.
"Paysafe and Binance are currently working together to implement an orderly and fair process to end this service in the next few months," explained Paysafe.
This announcement adds an additional layer of uncertainty to Binance's operations in Europe
Binance's regulatory challenges are not limited to the UK. These exchanges are currently under increased scrutiny in various jurisdictions, including the United States, Germany, France and the Netherlands.
The increasing international focus on Binance's operations underscores the challenges crypto exchanges face as they interact with ever-changing regulations.
