UK financial regulator blocks company from approving Binance … – Reuters.com

0

Signage for the Financial Conduct Authority (FCA), the Britain's financial regulatory body, is seen at their head offices in London, Britain March 10, 2022. REUTERS/Toby Melville/File Photo Acquire Licensing Rights
LONDON, Oct 10 (Reuters) – Britain's financial regulator on Tuesday said it was stopping peer-to-peer platform rebuildingsociety.com from approving financial promotions for Binance and other crypto asset firms, days after Binance announced it had partnered with the company.
Cryptocurrency exchange Binance, which is unregulated in Britain, in a blog post on Sunday said it had launched a new domain for UK users and that rebuildingsociety.com would be approving its marketing and communications materials.
A Binance spokesperson via email on Tuesday said that the company had invested "an enormous amount of time and resources" in ensuring that it is compliant with the Financial Conduct Authority's rules.
The FCA recently introduced new rules around cryptoasset promotions, which came into effect on Oct. 8.
"We shared our agreement with Rebuildingsociety.com with the FCA on Oct. 2, almost a full week before the requirements of the updated Financial Promotions Regime came into effect," the Binance spokesperson said.
Rebuildingsociety.com said in a blog that it had gone "above and beyond" the requirements to protect consumers when approving financial promotions for crypto asset companies and had applied for a waiver to allow it more time to comply with the new FCA rules. The waiver request was also rejected on Tuesday, the company's blog said.
Rebuildingsociety.com said it planned to appeal the FCA's restrictions on the company and its decision to reject the waiver request.
The FCA in its decision notice on Tuesday said unregistered cryptoasset firms must not promote cryptoassets to UK consumers unless they have an authorised company to approve the promotions.
The watchdog, which has long warned investors that they should be ready to lose all of their investments in cryptoassets, said rebuildingsociety.com can appeal the decision.
Under the FCA's rules, a firm it has authorised can approve promotions of companies it does not regulate, a system that is being tightened from February by the watchdog.
From next month, regulated firms that want to approve marketing of non-regulated firms must begin applying to the FCA for permission by demonstrating that they have the necessary skills and expertise to understand the products being sold.
The FCA in June 2021 said Binance was not permitted to undertake any regulated activity in Britain.
Reporting by Elizabeth Howcroft and Huw Jones; Editing by Mark Porter and Emelia Sithole-Matarise
Our Standards: The Thomson Reuters Trust Principles.
Thomson Reuters
Reports on the intersection of finance and technology, including cryptocurrencies, NFTs, virtual worlds and the money driving "Web3".
The European Union and Japan concluded an agreement on Saturday on cross-border data flows, which should drive business and may help shape global rules for data, the European Commission said.
The death toll from a fire at a mine owned by ArcelorMittal in Kazakhstan rose to 42 people on Sunday as a search for four miners continued, the Ministry for Emergency Situations said.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2023 Reuters. All rights reserved

source

Leave a Reply

Your email address will not be published. Required fields are marked *