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.
The FCA in its decision notice on Tuesday said unregistered cryptoasset firms must not promote cryptoassets to UK consumers unless they have an authorised firm 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.
Rebuildingsociety.com, which says it is based in Leeds, UK, did not immediately respond to a Reuters request for comment.
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; Editing by Huw Jones and Mark Porter
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