Binance and OKX started navigating the UK's new FinProm regulations.
These rules, enforced by the UK Financial Conduct Authority (FCA) from October 8th, aim to bring more transparency and fairness to the marketing of crypto services.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What Does Staking Mean in Crypto? (Easily Explained!)
In anticipation of the new regulations, Binance took multiple steps to align its services with UK laws.
On October 6th, two days before the FinProm Regime came into effect, Binance unveiled a localized domain for its UK retail customers. This domain will feature only the products and services sanctioned by UK regulations, such as spot and margin trading, Binance Pay, and its NFT marketplace.
On top of that, Binance will no longer offer services like gift cards, research facilities, or referral bonuses to its UK retail customers. The crypto giant has joined forces with local peer-to-peer lending platform Rebuildingsociety to facilitate compliance.
OKX, another significant player, also revealed its compliance strategy on October 6th. The crypto exchange has trimmed its offerings to about 40 tokens, incorporated vivid risk warnings, and even launched a dedicated UK social media account on X (formerly known as Twitter).
One of the risk warnings prominently displayed on OKX's main page urges users to be prepared for all investment risks, stating:
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.
In a recent update, the FCA revealed that some crypto companies, such as KuCoin and HTX, have not yet conformed to the new regulations. These firms were included in a list of 143 "non-authorized firms" that the FCA advises the public to avoid.
The UK's new FinProm regulations have compelled major crypto exchanges like Binance and OKX to adapt their business models. While there may be initial growing pains, the industry is gradually aligning itself with regulatory frameworks designed to promote transparency and protect consumers.