Prominent global cryptocurrency exchanges, including Binance and OKX, have revealed their commitment to adhere to the UK's recently implemented financial promotion regulations. The Financial Conduct Authority (FCA) of the United Kingdom put into effect its new Financial Promotions (FinProm) regime for cryptocurrency firms on October 8. This move is aimed at ensuring that cryptocurrency promotions are conducted fairly, transparently, and with integrity.
Binance, in an announcement on October 6, stated that it had launched a new domain specifically for UK users and established a partnership with the local peer-to-peer lending platform Rebuildingsociety. As per the compliance update, Binance's UK retail customers will be redirected to a localized domain starting from October 8. This domain will only showcase Binance's products and services that comply with UK regulations. These permissible offerings will include spot and margin trading, Binance Pay, its non-fungible token (NFT) marketplace, loans, and more. However, Binance will discontinue certain products like gift cards, referral bonuses, educational materials, and research in accordance with the new FCA rules. It's important to note that these changes solely affect retail users in the UK and do not impact users exempted under the FinProm rules, including certain institutional and professional investors.
Similarly, OKX also issued a statement regarding FinProm compliance on October 6. The exchange announced a reduction in its token offerings to approximately 40 assets and introduced prominent risk warnings on its interface. On the OKX homepage, a warning at the top encourages investors to take a few minutes to understand the risks associated with cryptocurrency investments. The warning message emphasizes the high-risk nature of crypto investments and advises investors not to expect protection if things go awry.
MoonPay, a crypto payments service, is another industry player working diligently to conform to the new rules introduced by FinProm. Matt Sullivan, Deputy General Counsel at MoonPay, highlighted the challenges associated with ensuring compliance while operating a global business. He pointed out that meeting FinProm's requirements involves implementing localized product updates, establishing new processes and policies, and providing company-wide education on compliance matters. Sullivan acknowledged that there might be an initial adjustment period as views on the application of certain rules continue to evolve.
However, some cryptocurrency companies have reportedly encountered difficulties in complying with the UK's new promotional regulations. The FCA, in an official statement on October 8, suggested that major cryptocurrency exchanges such as KuCoin and HTX (formerly Huobi) may be promoting their services without the required licenses. These companies are listed among 143 entities categorized as "unauthorized firms" that are prohibited from operating in the UK. The warning list provides limited information beyond the advice to avoid engaging with these entities.
