Regulator Blocks Binance's U.K. Partner from Approving Crypto Ads

The Financial Conduct Authority (FCA) may have thrown a spanner in the works for Binance's efforts to adhere to the new cryptocurrency marketing regulations. This comes as the FCA placed limitations on Binance's recently enlisted local partner.

As per the local financial watchdog, Binance's U.K. partner is now prohibited from giving the green light to crypto advertisements. This development has the potential to disrupt the exchange's endeavors to conform with the new marketing regulations.

In the previous week, Binance had revealed its partnership with Rebuildingsociety.com, right before the enforcement of the new rules governing cryptocurrency promotions. According to these regulations, cryptocurrency companies must be registered with the Financial Conduct Authority (FCA) in order to self-approve their promotions and advertisements. However, unregistered crypto firms can seek endorsement for their ads from authorized entities.

Binance, not being registered with the FCA, had asserted that it was aligning with the new regulations by partnering with Rebuildingsociety.com for the approval of its communications.

However, on Tuesday, the FCA issued an alert, stating that Rebuildingsociety.com is not permitted to approve crypto advertisements for firms. The FCA additionally directed them to "withdraw any existing approvals for crypto promotions." The firm has until Friday to notify the FCA in writing that it has taken the necessary actions.

"The FCA can impose requirements on a firm in circumstances where it concludes that it is necessary to do so to advance one or more of the FCA's operational objectives, which includes securing an appropriate degree of consumer protection," the FCA explained in a post.

While Binance chose not to provide a statement regarding the limitations imposed on its U.K. partner, a spokesperson did inform Bitsday that they had shared their partnership agreement with the FCA on October 2, almost a week before the updated Financial Promotions Regime took effect.

While the FCA refrained from further commentary on the matter, they noted in a late Tuesday post that if "unregistered crypto asset firms’ promotions" are no longer endorsed by an authorized firm, "they must cease promoting crypto assets to U.K. consumers until such time as they can find an authorized firm to approve their financial promotions."

The initial report on this news came from The Block. Bitsday has reached out to Rebuildingdociety.com for their response.

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