- Cryptocurrency exchange Binance temporarily halted onboarding services in the United Kingdom.
- The UK regulatory body imposed restrictions on the exchange’s financial promotional partner.
- Binance is seeking new partnerships within the region.
Cryptocurrency giant Binance has come under a series of regulatory controversies throughout the year amidst the ongoing global push for stricter oversight of the asset class. As United States regulators SEC and CFTC leveled lawsuits against the exchange, Binance faced a wave of rejections and withdrawals in various regions.
Binance redirected its focus to the United Kingdom, eyeing the potential for a regulatory haven. However, the exchange’s challenges seem to be growing more complex by the day as it announced the temporary suspension of its services in the United Kingdom.
UK Service Halted
On October 16th, Binance announced the immediate discontinuation of its services for users within the United Kingdom, including suspending its mobile application and online platform.
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The temporary suspension comes in response to the crackdown on digital assets advertising firms by the UK’s Financial Conduct Authority (FCA). The heightened scrutiny covered Binance’s UK-based partner for financial promotions, Rebuildingsociety.com Ltd (REBS).
Binance partnered with REBS to oversee its marketing and communications on October 6 as part of its measures to strengthen compliance in line with the newly set regulatory demands of the FCA.
While the decision may have disappointed prospective users, existing users who meet the Investor Declaration and Appropriateness Test criteria will retain access to the exchange’s services. However, Binance emphasized that no new products or services would be introduced during this temporary suspension.
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The ongoing challenges in the UK are just the latest in the list of setbacks for the exchange as it grapples with a tumultuous relationship with European regulators.
Binance Regulatory Challenges in Europe
Binance faces similar regulatory hurdles across Europe, from full market exits to abrupt partner losses.
In July, credit card giant Visa stepped back from its Binance partnership, discontinuing the issuance of new Visa cards. The Binance Visa card had been a primary means for European users to utilize funds or crypto deposited to the exchange. Consequently, users who didn’t already possess the card could no longer obtain it.
Binance’s European banking partner, Paysafe, also terminated its association with the exchange in September, abruptly ending its EUR transaction processing. The decision and repercussions affected several users and left investors without a convenient and cost-effective method for depositing or withdrawing from the exchange.
On a wider scale, Binance was forced to exit multiple European jurisdictions, including the Netherlands and Cyprus, as regulators intensified pressure on the exchange.
On the Flipside
- Recent European troubles mark substantial setbacks for Binance’s operations on the continent, underscoring the increasing regulatory pressure the crypto giant faces.
- “Binance CEO Changpeng”“CZ” Zhao currently faces a possible indictment in Brazil alongside three other top executives at the exchange.”Binance CEO Changpeng “CZ” Zhao currently faces a possible indictment in Brazil alongside three other top executives at the exchange.
- Binance’s accumulating challenges cast doubt on its executive’s assertion that the exchange is 90% prepared for a Mica license.
Why This Matters
The mounting regulatory challenges Binance faces threaten the exchange’s health and reputation as a reliable crypto entity as regulators watch the outcome of its cases in the US.
Read more on the ripple effect of Binance’s increasing challenges as a growing number of executives dip:
Binance’s Asia-Pacific Head Exits Amidst Regulatory Storm
OSL allegedly wants out of Hong Kong as markets remain unprofitable. Read more:
Hong Kong’s OSL Reportedly Seeks $128M Sale Amid Profit Woes
