Binance and OKX have taken action to adapt to and comply with the legal environment in response to the Financial Conduct Authority’s (FCA) strict requirements on providers of cryptocurrency assets. Over 140 organizations, including significant exchanges like Huobi and KuCoin, have been flagged by the FCA for being on its list of “non-authorized” companies, which the operations has since been suspended.
The FCA’s aggressive approach to managing suppliers of cryptocurrency assets was made clear in August when the regulatory body revealed that only 38 of the 291 registration applications it had received in February 2020 had been accepted. On October 8, the FCA added 143 more organizations to its warning list of “non-authorized” companies.
These organizations included well-known exchanges like Huobi-owned HTX and KuCoin. Due to these businesses’ lack of FCA clearance, customers are encouraged to use caution and refrain from engaging with them. The FCA’s aim to safeguard consumers from possible hazards linked with unlicensed crypto asset issuers is reflected in this increase in the list.
FCA Waves Criticism, As Binance Reaffirms Compliant To Regulation
Reacting to the recent development, Jane Lubale, an industry analyst with the Inside Bitcoin platform, said the FCA’s strategy may appear rigid. Still, it attempts to find a balance between encouraging innovation and defending the interests of investors and consumers.
Earlier last week, the FCA reaffirmed its efforts to reduce the dangers of fraud, money laundering, and market manipulation in the cryptocurrency sector by regulating producers of cryptocurrency assets. Within the week, the FCA listed the list of registered cryptocurrency asset providers instead of the expanded list of “non-authorized” organizations.
The list includes popular companies like Bitstamp, Revolut, and Gemini, which have proven their dedication to adhering to legal standards. Binance, last week, reacted to the FCA’s rules by announcing that they will be adapting the necessary compliance criteria.
While defending its actions, Binance, through its statement, said they are working to ensure that its activities in the UK comply with the guidelines established by the FCA, proving its dedication to providing its users access to a secure and regulated environment.
Binance says they have developed a new website platform for United Kingdom retail users, where they are being directed to view an exclusive list of cryptocurrency products and services that comply with United Kingdom regulations. Similar to this, OKX exchange has taken action to abide by the FCA’s rules, reaffirming its dedication to operating within UK regulatory restrictions.
OKX To Comply With Financial Promotions Regime, Assures UK Users
OKX is partnering with FCA and their Financial Promotions Regime to improve traders’ and investors’ compliance measures. According to the statement by the company announcing their latest move, the company said that they are developing a new experience for their new users, which will also comply with the guidelines contained in the Financial Promotions Regime.
In their statement, the company also said that they are pleased to serve their United Kingdom users. OKX, on their X official handle, announced that they will be implementing the proposed changes, which will comply solely with the new United Kingdom Financial Conduct Authority regulations. The proposed change is expected to start on October 8th.
In their post, the company explained that the update will align strictly with the Financial Promotions Regime, especially for retail users. They also revealed that they (OKX) will continue to offer cryptocurrency services to its United Kingdom users amid the change in their operation.
