The UK Financial Conduct Authority has issued 146 alerts in first 24 hours of its new crypto marketing regime, including Binance’s new marketing approval partner.
On October 6, Binance, the world’s largest crypto exchange, announced it will launch a new domain for UK users in order to comply with the UK’s new Financial Promotions Regime.
As part of its strengthened presence in the UK, the exchange partnered with Rebuildingsociety.com – an FCA-approved firm – to approve its marketing and communications material as an S21 approver. (The role of an S21 approver is to ensure that promotional materials are “clear, fair and not misleading”).
However, the partnership has already been roadblocked by the Financial Conduct Authority (FCA), the UK’s main financial regulator, who issued an intervention restricting the company from conducting financial promotions on behalf of unauthorised crypto providers, such as Binance.
“The Firm must not approve the content of any financial promotion for a Qualifying Cryptoasset for communication by an unauthorised person,” the announcement states.
Rebuildingsociety.com must withdraw any existing approvals of promotional material containing a “qualifying crypto asset” by 5pm, October 11.
The Authority added nearly 150 firms to its warning list, including large exchanges such as Huobi and KuCoin. According to the announcement, the new regime applies to all firms marketing cryptoassets to UK consumers regardless of whether the firm is based overseas or what technology is used to make the promotion.
There are 42 firms currently approved to provide crypto-related activities in the UK, including Bitstamp, eToro, Paysafe, Komainu Revolut, and Gemini.
In a recent conversation with CryptoPlug, Dr. Lisa Cameron, MP for East Kilbride, Strathaven and Lesmahagow, said that the UK is moving forward on its plans to transform the UK into a global crypto hub, but the FCA has struggled for resources.
She said that workers are often “poached” from the Authority by industry as soon as they have the necessary skills and expertise.
Nonetheless, the FCA said that companies who engage with them “in good faith with a view toward achieving compliance” will receive a “proportionate approach” to implementation.
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