Binance will pause the first registrations in Great Britain from this week. The reason behind the crypto exchange’s decision is that it needs some time to bring its operations into compliance with UK crypto marketing and advertising laws. Britain is exploring ways to brand itself as a crypto hub. British Prime Minister Rishi Sunak has taken several pro-crypto measures in the recent past to testify to the UK’s commitment to advancing Web3. That said, the country does not want to see financial turmoil arise because uninformed citizens have succumbed to the crypto hype and made poor investment decisions.
In an effort to control the buzz around crypto in Britain, authorities there have created a set of rules to monitor crypto-related marketing and advertising. These rules came into effect on October 8. These rules allow crypto companies registered with the UK Financial Conduct Authority (FCA) to review and officially approve their own advertisements. If not, crypto companies can use government-authorized organizations to approve their ads.
A few weeks ago, Binance partnered with Rebuildingsociety.com to green-flag its promotional materials and advertising in the UK. However, Rebuildingsociety.com, which claims to be a peer-to-peer lending platform, was not authorized to approve crypto advertisements and therefore Binance must now reevaluate its position. The exchange is looking for another FCA-authorized company to approve its advertisements.
Meanwhile, existing Binance users in the UK who have completed their ‘Investor Declaration and Appropriateness Test’ will be able to access the services. However, they are not allowed to use any new products or services that Binance rolls out before it gets an ad approval agent.
Founded in July 2017, Binance is the world’s largest crypto exchange by trading volume. The company has had some run-ins with the US Securities and Exchange Commission (SEC) and has faced investigations in the US. To avoid legal problems in Great Britain now, Binance is willing to take some time and complete all legal formalities.
Britain, meanwhile, has maintained a strict stance against exposing its citizens to volatile crypto assets that could cause them financial losses. In May, the country wanted to ban the marketing technique of ‘cold calling’ for traders dealing with cryptocurrencies and insurance.
