Days after Binance launched its partnership with rebuildingsociety.com, Britain’s financial authority stated on Tuesday that it was prohibiting the platform from allowing financial advertisements for Binance along with other crypto asset companies.
In a blog post published on Sunday, the unregulated cryptocurrency exchange Binance announced the introduction of a new domain for UK consumers and the approval of its communications and marketing materials by rebuildingsociety.com.
By email on Tuesday, a Binance representative stated that the business had put “an tremendous amount of effort and resources” into making sure it complies with the Financial Regulation Authority’s regulations.
New guidelines for cryptoasset promotions were recently released by the FCA and went into effect on October 8.
“We disclosed our contract with Rebuildingsociety.com and the FCA on Oct. 2, approximately a full week before the conditions of the revised Financial Promotional Regime came into effect,” a spokeswoman for Binance stated.
Unregistered cryptoasset firms are not allowed to advertise cryptoassets to UK customers, according to the FCA’s judgment notice published on Tuesday.
The watchdog said rebuildingsociety.com may challenge the judgment and has long cautioned investors to be prepared to lose all of their money invested in cryptoassets.
Rebuildingsociety.com, which claims to be based in Leeds, UK, did not react right away to a request for comment from Reuters.
A company that the FCA has authorized may allow promotions for businesses that it does not oversee.
Starting next month, regulated businesses that want to approve the marketing of unregulated businesses must start requesting for authorisation from the FCA by proving that they possess the knowledge and experience necessary to comprehend the items being promoted.
The FCA declared Binance ineligible to engage in any regulated business in Britain in June 2021.