The local financial authority warned on Tuesday that Binance’s U.K. partner was not permitted to approve cryptocurrency adverts, possibly undermining the exchange’s efforts to adhere to the new marketing regulations.
Just before new crypto promotion regulations went into effect over the weekend, Binance announced last week that it was collaborating with Rebuildingsociety.com. The system mandates that cryptocurrency companies register with the Financial Conduct Authority (FCA) in order to be able to approve their own promotions and advertisements, but it also permits unregistered cryptocurrency companies to have their advertisements approved by registered companies.
Binance, which is not registered with the FCA, said that by collaborating with Rebuildingsociety.com to have it approve messages for the cryptocurrency firm, it was in compliance with the new regulations.
However, the FCA tweeted a warning on Tuesday stating that Rebuildingsociety.com is unable to allow cryptocurrency adverts for businesses and should “withdraw any existing approvals for crypto promotions.” The business has until Friday to submit written confirmation to the FCA that all relevant steps have been taken.
Although a representative for Binance declined to comment on the limitations imposed on its U.K. partner, the exchange said that it had disclosed its partnership agreement with the FCA on October 2, “almost a full week before the requirements of the updated Financial Promotions Regime came into effect.”