The FCA recently introduced new rules around crypto asset promotions, which came into effect on October 8

UK’s financial regulator on Tuesday said it was stopping peer-to-peer platform rebuildingsociety.com from approving financial promotions for Binance and other crypto asset companies, days after Binance announced it had partnered with the firm.

Crypto currency exchange Binance, which is unregulated in the UK, in a blog post on Sunday said it had launched a new domain for UK users and that rebuildingsociety.com would be approving its marketing and communications materials.

A Binance spokesperson on Tuesday stated that the firm had invested “an enormous amount of time and resources” in making sure that it is compliant with the Financial Conduct Authority’s rules.

The FCA recently introduced new rules around crypto asset promotions, which came into effect on October 8.

We shared our agreement with Rebuildingsociety.com with the Financial Conduct Authority on October 2, nearly a full week before the requirements of the updated Financial Promotions Regime came into effect, the Binance spokesperson added.

The Financial Conduct Authority in its decision notice on Tuesday said unregistered crypto asset companies must not promote crypto assets to UK consumers unless they have an authorised company to approve the promotions.

The FCA, which has long cautioned investors that they should be ready to lose all of their investments in crypto assets, said rebuildingsociety.com can appeal the decision.

Under the FCA’s rules, a company it has authorised can approve promotions of firms it does not regulate, a system that is being tightened from February by the authority.

From next month, regulated firms that want to approve marketing of non-regulated companies must begin applying to the Financial Conduct Authority for permission by demonstrating that they have the required skills and expertise to understand the products being sold.

The FCA in June 2021 said Binance was not allowed to undertake any regulated activity in Britain.