Leading cryptocurrency exchanges , along with crypto payment service MoonPay, have taken significant steps to adhere to the United Kingdom’s latest Financial Promotions (FinProm) Regime, enforced by the Financial Conduct Authority (FCA) on October 8.
These regulatory changes in the UK are aimed at fostering transparency and fairness in promoting cryptocurrency products and services in the UK. And while some companies like Binance, OKX, and MoonPay have complied with the new regulations 143 other organizations, including Huobi and now known as HTX and KuCoin, have been added to the warning list for non-compliance.
Binance’s compliance efforts
Binance, one of the world’s largest crypto exchanges, announced on October 6 that it has initiated measures to comply with the new UK regulations. To align with FCA requirements, BINANCE has introduced a dedicated domain for its UK user base and established a partnership with Rebuildingsociety, a local peer-to-peer lending platform.
Starting from October 8, 2023, Binance’s UK retail users will be automatically redirected to this localized domain. The domain will exclusively showcase Binance products and services that comply with UK regulations, including spot and margin trading, Binance Pay, an NFT marketplace, and loans.
Notably, Binance will cease offering certain products like gift cards, referral bonuses, and research, in line with the new FCA rules. It’s important to mention that these changes exclusively impact retail users in the UK and will not affect institutional and professional investors exempt under the FinProm rules.
OKX embraces the new UK regulation
Similarly, on October 6, OKX, another prominent crypto exchange, unveiled its commitment to FinProm compliance.
OKX has streamlined its token offerings to around 40 assets to meet the FCA’s requirements. Moreover, they have prominently displayed eye-catching risk warnings on their platform, emphasizing the high-risk nature of crypto investments. This warning is displayed prominently at the top of OKX’s main page, urging investors to consider the potential loss of their invested capital.
To enhance transparency, OKX has also launched a dedicated UK account on the social media platform X (formerly Twitter). Through this account, the exchange will keep users informed about the products and services that conform to the new UK regulations, ensuring that investors are well-informed about the risks associated with cryptocurrency investments.
