The Financial Conduct Authority (FCA) in the United Kingdom has placed restrictions on Rebuildingsociety.com, Binance’s local partner, regarding the approval of financial promotion content from unauthorized individuals. The FCA has instructed Rebuildingsociety.com to revoke any prior approvals granted to unlicensed entities and to notify its clients that it cannot endorse content from unauthorized individuals or entities. Additionally, the company must retract any advertisements promoting Binance’s services that were approved as financial promotions. These orders must be complied with by 5 PM BST on October 11th. Rebuildingsociety.com is also required to submit a report to the authorities before October 13th to demonstrate compliance with these requirements. However, as of press time, the company has not responded to CryptoSlate’s request for comment.
Binance’s Collaboration with Rebuildingsociety.com
On October 6th, Binance introduced a dedicated page specifically designed for its U.K. clientele. Alongside this announcement, the company also revealed a strategic collaboration with Rebuildingsociety.com, a firm registered with the FCA and responsible for ensuring the approval of Binance’s marketing materials in accordance with local regulations. It is worth noting that Binance’s U.K. subsidiary had withdrawn its FCA registration in June. While the recent FCA order does not explicitly mention Binance, it highlights the exchange’s lack of registration with the regulatory authority. Interestingly, Binance does not appear on the FCA’s list of 143 unauthorized entities.
Binance’s Compliance with Regulations
In a press statement shared with CryptoSlate on October 10th, Binance stated that its agreement with Rebuildingsociety.com was communicated to the FCA a week prior to the implementation of the new regulatory regime. Binance claims that its dedicated page for U.K. customers has been created to adhere to the detailed requirements of the new regulations. Furthermore, the company noted that the FCA has issued warnings against over 140 firms for violating the Financial Promotions Regime since its update on October 8th.
The FCA’s restrictions on Binance’s local partner, Rebuildingsociety.com, regarding the approval of financial promotion content from unauthorized individuals or entities highlight the exchange’s lack of registration with the regulatory authority. Binance’s collaboration with Rebuildingsociety.com was aimed at ensuring compliance with local regulations, but the FCA’s order suggests that further action is necessary. Binance has asserted that its dedicated page for U.K. customers has been built to meet the requirements of the new regulatory regime. As the situation unfolds, both Binance and Rebuildingsociety.com must navigate the regulatory landscape to regain trust and continue serving their U.K. clientele.