After cryptocurrency exchange Bybit left the UK market two weeks ago over crypto marketing rules, some of its foreign competitors have found a way to comply with the rules by collaborating with local partners.
Coinbase and OKX are now working with Archax to get their financial promotions approved while Binance, on the other hand, announced in a blog post that it had teamed up with Rebuilding Society, a licensed peer-to-peer lending company that has given out only £35 million ($42.6 million) in loans since its inception in 2013, as per its website.
These partnerships are expected to enable the exchanges to keep serving UK customers from abroad despite the new marketing regulations from the Financial Conduct Authority (FCA) — which entail a cooling-off period for new investors — that have recently taken effect.
According to George Morris, a partner at law firms Simmons & Simmons, when a firm enters these agreements with an exchange “they approve the promotions and effectively they take responsibility for these promotions. It’s very much a symbiotic thing.”
In a recent announcement, the FCA warned 143 entities are operating in the UK without permission and named them in a list, which includes major global exchanges HTX and KuCoin, which per the regulator “may be promoting financial services or products without our permission.”
The FCA’s new rules for crypto asset and financial promotions took effect on October 8 and apply to promotions across various media forms. Unregistered firms have four routes to stay on the right side of the law.
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- Source: https://www.cryptocompare.com/email-updates/daily/2023/oct/10/
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