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Prominent global cryptocurrency exchanges such as Binance and OKX have declared their efforts to adhere to the newly established financial promotion regulations in the United Kingdom.
The U.K. Financial Conduct Authority (FCA) implemented the nation’s new Financial Promotions (FinProm) Regime on Oct. 8 for cryptocurrency businesses, with the objective of ensuring equitable, clear, and transparent crypto promotions.
On Oct. 6, Binance revealed that it has introduced a new domain for users in the U.K. and has formed a partnership with the local peer-to-peer lending platform Rebuildingsociety.
As part of the compliance update, Binance’s retail users in the U.K. will be redirected to a localized domain starting from Oct. 8, which will exclusively display Binance products and services that are allowed under U.K. regulations. These offerings will encompass spot and margin trading, Binance Pay, its non-fungible token (NFT) marketplace, loans, and more.
Nevertheless, in accordance with the new FCA regulations, Binance will discontinue offering products such as gift cards, referral bonuses, and educational resources, as stated in the announcement.
The modifications will solely affect retail users in the U.K. and will not impact users who qualify for exemptions under the new FinProm regulations, including certain institutional and professional investors.
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OKX also released a statement regarding FinProm compliance on Oct. 6. The exchange indicated that it has reduced its token offerings to approximately 40 assets and has incorporated prominent risk warnings on its platform. One such warning is positioned at the top of OKX’s main page, encouraging investors to take a moment to understand the risks associated with crypto investments. The warning states:
“Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.”
Furthermore, OKX has established a dedicated U.K. account on X (formerly Twitter). The company has committed to highlighting the products and services that will comply with the new U.K. regulations on this social media platform.
Crypto payment provider MoonPay is another industry player striving to meet the new FinProm requirements. According to MoonPay’s deputy general counsel Matt Sullivan, one of the primary challenges in ensuring compliance with the regulations is linked to operating a global business.
Related: UK FCA gives unregistered crypto firms ‘final warning’ on ads regime compliance
“The challenge arises in ensuring compliance with all of these new requirements in the U.K. while operating across the globe,” Sullivan stated in a comment to Cointelegraph, adding:
“Ensuring compliance with the FinProm rules requires localized product updates, implementation of new processes and policies, as well as education across the company. […] There may be a bit of a ‘settling in’ period, and that initial views as to the application of certain rules may evolve over time.”
Some cryptocurrency firms appear to be facing difficulties in adhering to the new promotion regulations in the United Kingdom. According to official announcements made by the FCA on Oct. 8, major crypto exchanges such as KuCoin and HTX (formerly Huobi) may have been promoting their services without authorization. These firms were included in a list of 143 entities identified as “non-authorized firms” that are prohibited from operating in the United Kingdom. The warning list provides little information beyond the statement, “You should avoid dealing with this firm.”
