Cryptocurrency exchange Binance has stopped accepting new clients in the UK following a regulatory decision that halted its marketing efforts in the country. The decision was publicly announced less than an hour before its implementation on 16 October 2023 as a result of the Financial Conduct Authority (FCA) blocking Binance's efforts to adapt to the new industry standards.

These standards, which became effective earlier in October are among the most stringent in the world, reflecting the FCA's intent to bolster consumer protection in the wake of the previous year's digital asset price decline and the implosions of companies such as FTX. In accordance with these new regulations, only authorized companies are permitted to promote cryptocurrency advertisements in the UK. Non-compliance carries the risk of substantial fines and potential imprisonment of up to two years, applying universally to companies both within and outside the UK.

In the first week of the new regulatory framework, the FCA has issued over 150 alerts regarding unauthorized promotions by crypto groups. Notably, Binance faced regulatory issues in 2021 when it was instructed by the FCA to cease all regulated activities in the UK due to a failure to respond to basic inquiries. Previously, Binance had established a partnership with Rebuildingsociety.com.

However, last week, the FCA determined that this Leeds-based firm was prohibited from promoting crypto services in the UK, thereby obstructing Binance's lawful marketing efforts in Britain. Binance responded by issuing a statement indicating that discussions were underway with another FCA-authorised entity to gain approval for their financial promotions as quickly as possible. While existing Binance customers will continue to have access to services as usual, no new products or services will be introduced during this interim period.

This development is the latest in a series of challenges faced by Binance this year, including lawsuits from the US Securities and Exchange Commission and the Commodity Futures Trading Commission. Other Binance developments In August 2023, Binance also decided to shut down its crypto debit card services in Latin America and the Middle East. The crypto debit card functioned similarly to traditional debit cards, enabling users to make everyday purchases.

The key distinction was that these cards were funded with cryptocurrency assets. The matter initially came to public attention when a user on X (formerly Twitter) raised concerns about issues with crypto debit cards in Colombia. In response to the query, Binance made an announcement indicating the suspension of debit card services.

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