Binance puts brake on new UK users exchange access

Binance, the global cryptocurrency exchange, has recently encountered a rough patch with UK regulators.

Here's what transpired:

• Binance Updates: British authorities have clamped down on Binance, barring new users from accessing its platform from 5 p.m. London time on Monday. This news comes directly from Binance's blog post.

• Potential Complications: This move positions Binance as the largest crypto exchange denied by the UK. The fallout could present a significant challenge for Binance, as the UK represents one of the biggest crypto markets outside the US.

• UK Regulations: From October 8, UK regulations require all crypto platforms, irrespective of their location, to issue clear risk warnings to UK consumers and uphold higher technical standards. Non-compliance penalties include being blacklisted by the Financial Conduct Authority (FCA), heavy fines, and potential imprisonment.

• Binance Partnerships: Binance previously partnered with peer-to-peer lending platform Rebuildingsociety.com for communication approvals. However, the FCA has now restricted Rebuildingsociety.com, ordering them to withdraw all prior approvals by 5 p.m. on October 11.

• Other Discussions: Binance is reportedly in discussions with another FCA-authorised firm to expedite their financial promotion approvals. The FCA has offered no comment on the situation.

• Global Scrutiny: Binance and its CEO, Changpeng Zhao, are facing intense scrutiny globally, with pending lawsuits in the US and Canada and investigations from the US Department of Justice.

Other crypto firms, such as exchanges Huobi and KuCoin, have also been subjected to the FCA's strict supervision, landing on the watchdog's warning list.