Regulatory Challenges in the Cryptocurrency World: Binance and … – Shoosmiths


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Binance, one of the world’s largest cryptocurrency exchanges, made headlines when it declared its compliance with the FCA’s latest financial promotion regulations. The exchange did so with great fanfare,  having received approval from for the promotion, which expressed its delight and all the hard work involved in in approving Binance’s promotion. However, the excitement was short-lived.
On October 10, the FCA’s Register revealed restrictions on’s permissions, stating that:
It appeared that’s involvement in approving promotions for Binance’s “qualifying cryptoasset” had been short-lived, as indicated by these restrictions.
However, as of October 12, more than 12 hours after the FCA’s deadline, the website still stated that it had approved Binance’s financial promotion.
One possible issue for may have been that the approval pertained to a promotion for products and services offered by Binance. Given Binance’s history of FCA warnings and the withdrawal of permissions for its UK subsidiary, the FCA might have had reservations about any approval of a financial promotion by Binance, not just one by Notably, the Binance website mentioned that the Binance platform is offered by Nest Services Limited, raising questions about its regulatory status in the UK.
On the other side of the cryptocurrency spectrum, the decentralised exchange HTX, previously known as Huobi, faced its own troubles as it was struck off the Seychelles corporate register of crypto exchanges. Rachel’s article provides detailed insight into the background of this event, including the involvement of various entities and individuals.
In summary, the story of HTX’s removal from the Seychelles corporate register is not uncommon in the crypto exchange world. It involves a “technology holding company” with a registered office in Croydon, at a location (a) associated with an astonishing number – over 130,000 – of registered companies, according to Companies House and (b) apparently unoccupied.
The cryptocurrency industry continues to grapple with regulatory challenges. Binance’s attempt to navigate the FCA’s new financial promotion rules met with regulatory restrictions on the firm it retained to assist it in doing so, raising questions about the compliance of key players in the market. Meanwhile, HTX’s removal from the Seychelles corporate register serves as another reminder of the complex and often opaque nature of the cryptocurrency world. As these events unfold, regulatory scrutiny remains a significant aspect of the cryptocurrency landscape, and the industry continues to evolve in response to these challenges.
This information is for educational purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given. © Shoosmiths LLP 2023.
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© Shoosmiths LLP 2023


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