The UK’s Financial Conduct Authority (FCA) has taken action against local firm rebuildingsociety.com for improperly facilitating cryptocurrency promotions by major exchange Binance.
Rebuildingsociety.com had been assisting Binance with complying to new FCA regulations governing crypto asset promotions across websites, social media and other channels.
Clamping Down on Non-Compliant Crypto Promotions
However, the FCA intervened and directed rebuildingsociety.com to immediately withdraw any approvals granted to unauthorized firms like Binance for financial promotions.
The regulator also ordered the company to warn its clients against posting unapproved content and take down adverts promoting its services.
Impact on Crypto Platform Online Presence
The FCA crackdown has already affected services like Binance’s news feed on its global website, which is no longer available in the UK due to lacking local authorization.
Other platforms like Coinbase have also shuttered UK access to certain apps due to the promotions rules.
Asserting Strict Crypto Compliance Norms
Analysts see the moves as the FCA firmly asserting its oversight on the crypto sector to uphold stringent consumer protection standards.
The regulator has adopted a strict posture to regulate digital asset promotions and enforce compliance, sparing no leniency even for prominent players like Binance.
While adjustment to the tightened regime has posed difficulties, credible platforms embracing the higher compliance bar can help restore trust after recent market turmoil.
Going forward, the FCA appears ready to aggressively police crypto communications and marketing to prevent unvetted offerings from reaching UK consumers.