Last Updated on 11 October 2023 by Admin
As part of its new crypto marketing regime, the Financial Conduct Authority (FCA) has penalized the Rebuilding Society, the UK-based organization responsible for approving Binance’s compliance with regulatory requirements. This development follows Binance’s recent announcement that it will be partnering with the peer-to-peer lending platform Rebuilding Society in order to adhere to laws in the United Kingdom.
Meanwhile, the newest development is that the FCA has made its financial promotion restrictions applicable to suppliers of crypto asset services anywhere in the world.
Rebuilding Society is unable to perform financial marketing on behalf of unlicensed crypto-asset service providers due to limitations imposed by the FCA. The FCA’s OIREQ regulation states that the company must not provide its approval to any communications involving crypto-assets that are sent by unapproved third parties.
Meanwhile, Rebuilding Society has until Wednesday at 5 p.m. BST to revoke any promotional funding it may have already issued to unapproved parties. The FCA has also asked the company to notify its customers who use its third-party financial marketing service that the business does not review or endorse information from unknown or unapproved sources. Notably, ads that promote approval services for financial promotions must be removed.
Binance recently announced it will partner with Rebuilding Society to ensure financial promotional compliance in the UK, and this regulatory action follows soon after. In light of Rebuilding Society’s FCA authorization and regulatory permission, Binance recently emphasized that it was collaborating with the organization.
Notably, in August, Rebuilding Society launched a financial promotional clearance service aimed squarely at crypto asset companies concerned with staying in compliance with applicable laws and regulations.