FCA Restricts rebuildingsociety.com Ltd, Challenges for Binance in UK

Two days after the introduction of new crypto asset promotion regulations​, the UK Financial Conduct Authority (FCA) yesterday (October 10) imposed restrictions on rebuildingsociety.com Ltd to restrict its approval of cryptoasset financial promotions. Rebuildingsociety.com Limited is an FCA-regulated entity and authorised 'S21 approver' for crypto marketing and communications materials. 

On the 6th of this month, the crypto giant Binance announced a cooperation with rebuildingsociety.com Ltd​, appointing it to be responsible for the approval of Binance marketing communications materials in the UK. FCA's restriction on the company may undo Binance's efforts in the country.

Using the powers deriving from section 55L of the Financial Services and Markets Act (FSMA), the regulator has imposed the following restrictions on rebuildingsociety.com Ltd:

1. ​The Firm must not approve the content of any financial promotion for a Qualifying Cryptoasset for communication by an unauthorised person.

2. The Firm must, by no later than 5pm on 11 October 2023, withdraw any existing approvals of Financial Promotions containing a Qualifying Cryptoasset.

3. The Firm must, by no later than 5pm on 11 October 2023, notify any client it has engaged or been engaged by to approve (for the purposes of section 21 of the Act) the content of any Financial Promotion containing a Qualifying Cryptoasset of the fact of the Requirements and that the Firm is not permitted to approve the content of any Financial Promotion for a Qualifying Cryptoasset.

4. The Firm must, by no later than 5pm on 11 October 2023, withdraw any advertisements or equivalent promotion offering to approve the content of any Financial Promotion containing a Qualifying Cryptoasset for communication by an unauthorised person.

5. The Firm must, by no later than 5pm on 13 October 2023, confirm in writing to its designated contact at the Authority that it has taken all steps to comply with the Requirements.

FCA further added: "Consumers who have invested with an unregistered cryptoasset firm who has had its promotions approved by rebuildingsociety.com Ltd should still be allowed to receive communications about their existing assets that will allow them to withdraw, transfer or sell their existing assets. However consumers will not be able to receive promotions from unregistered cryptoasset firms related to further investment activity."