- The FCA’s new financial promotions law goes into effect on October 8.
- Binance and OKX lead the race in adhering to the new regulations.
- Other UK-based crypto service providers are racing against time to comply with the new rules.
The Federal Conduct Authority (FCA), the vigilant guardian of the UK’s financial markets, has unfurled a comprehensive set of regulations for crypto firms operating in the country. While the new guidelines sought to create a more secure and accountable environment for crypto, they initially forced major exchanges like Binance, OKX, and Bybit to pull the plug on their UK operations.
However, in a remarkable twist, Binance and OKX have decided to re-enter the UK, this time playing by the FCA’s new rules, shaping up a renewed chapter for the country’s crypto landscape.
Binance, OKX Play by FCA’s New Rules
Binance, in response to the FCA’s new financial promotions playbook, unveiled a new domain for UK users on October 6. The leading exchange teamed up with the FCA-regulated firm Rebuildingsociety.com Limited, entrusting them with overseeing Binance’s UK marketing and communications.
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The new FCA-compliant Binance website will let UK users access a range of FCA-approved services. These include fiat and crypto deposits, spot and margin trading, NFT marketplace, crypto conversion, Binance Pay, crypto loans, and Launchpad.
However, UK users must bid adieu to certain features such as Gift Cards, Academy, Research, Binance Feed, and Referral Bonuses, as Binance dons its FCA-compliant attire.
OKX also restructured its exchange to comply with the new policies. The exchange streamlined its offerings to encompass over 40 assets and plastered prominent risk warnings across its platform.
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While Binance and OKX lead the charge in adhering to the new regulations, other UK-based crypto service providers are racing against time to catch up, with the risk of being left in the regulatory dust.
Not Enough Time to Comply With FCA
The UK’s new FCA promotion laws for cryptocurrencies stipulate that crypto firms must now ensure their potential customers are crypto savvy and possess sufficient knowledge. Companies have been choreographed to pirouette risk warnings into their platforms and ads, coupled with a 24-hour cooling-off period for new customers.
As the clock ticks towards October 8, when the new laws go into effect, companies scramble to meet the deadline, pouring resources into this crypto compliance dance. While Bybit remains sidelined, having suspended its services, PayPal and Zumo, along with other UK-based crypto ensembles, are hustling to get the technical changes implemented in time.
Reports from the FCA hint at many firms struggling to hit the right notes and meet deadlines, indicating that many might not make it.
On the Flipside
- A Binance executive recently asserted that the crypto exchange is at least 90% ready for a MiCA license.
- Crypto regulation has been ramping up worldwide since the collapse of the FTX exchange in November 2022.
Why This Matters
The FCA’s new guidelines tame the crypto landscape in the country for new and existing users; however, it could hinder services and make it difficult for crypto firms or startups to establish themselves.
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