Major global cryptocurrency exchanges Binance and OKX have announced their efforts to comply with the new financial promotion regulations in the United Kingdom. The Financial Conduct Authority (FCA) implemented the country’s new Financial Promotions (FinProm) Regime on October 8th, aiming to ensure fairness, transparency, and integrity in crypto promotions.
To align with the compliance update, Binance made an announcement on October 6th that it has launched a new domain specifically for UK users and has partnered with the local peer-to-peer lending platform, Rebuildingsociety. Starting from October 8th, Binance’s UK retail users will be redirected to this localized domain, which will only display Binance’s products and services that comply with UK regulations. These permissible products include spot and margin trading, Binance Pay, the non-fungible token (NFT) marketplace, and loans, among others.
The compliance update will result in the cessation of products such as gift cards, referral bonuses, gift cards, academy, and research on the platform, in accordance with the new FCA rules. However, it should be noted that these changes will only affect retail users in the UK, and will not impact users exempted under the new FinProm rules, such as certain institutional and professional investors.
Similarly, OKX also issued a statement about its compliance with FinProm regulations on October 6th. The exchange has reduced its token offerings to around 40 assets and has implemented eye-catching risk warnings on its interface. One of these warnings, prominently displayed at the top of OKX’s main page, urges investors to take a few minutes to understand the risks associated with crypto investments. The warning explicitly states, “Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.”
Furthermore, OKX has also launched a dedicated UK account on X (formerly Twitter), committing to communicate about products and services in compliance with the new UK regulations on this social media page.
MoonPay, a crypto payment service, is another industry firm actively working towards compliance with the new FinProm rules. Matt Sullivan, the Deputy General Counsel of MoonPay, emphasized that one of the biggest challenges in ensuring compliance lies in operating a global business. Implementing localized product updates, new processes and policies, and company-wide education are required to comply with the regulations. Sullivan also acknowledged that there might be an initial “settling in” period and that views regarding the application of certain rules may evolve over time.
However, some crypto firms have faced difficulties in complying with the new promotion rules in the UK. On October 8th, the FCA issued official statements stating that major crypto exchanges such as KuCoin and HTX (formerly Huobi) may have been promoting their services without permission. These entities were listed among 143 “non-authorized firms” that are not allowed to operate in the United Kingdom. The FCA warning list simply advises individuals to avoid dealing with these firms.
In conclusion, major global cryptocurrency exchanges like Binance and OKX have taken steps to comply with the UK’s new financial promotion regulations. These efforts include launching localized domains, partnering with local platforms, reducing offerings, displaying clear risk warnings, and utilizing social media platforms to communicate about compliant products and services. However, challenges remain for firms operating globally, as they work to ensure compliance with specific regional rules and regulations.