Binance and OKEx, two of the largest crypto exchanges in the world, have both made adjustments to their operations to comply with the new regulations imposed by the U.K. Financial Conduct Authority (FCA).
The FCA recently released new rules for crypto-asset businesses which came into effect on Jan 10, 2021. The new regulations apply to any exchange that serves customers in the U.K., or provides services to U.K. citizens. As a result, both Binance and OKEx have taken steps to ensure they conform with the new rules.
Binance has set up a separate entity, Binance.UK, which will take over handling all U.K. user accounts and processing order book requests. The new entity is registered in the U.K. and will operate under the jurisdiction of the FCA. All existing user accounts on Binance must be migrated to Binance.UK by the end of January 2021.
OKEx has also taken action to ensure compliance with the new rules. It has launched a dedicated U.K. platform which complies with local regulations. All accompanying services such as fiat-to-crypto exchanges, marketplace services, and others, are also available for U.K. customers on the platform. As part of the regulatory requirements, users are required to register on this platform before being allowed to deposit or withdraw funds.
Both Binance and OKEx have had to make more stringent user guidelines in order to comply with the regulations. These include Know Your Customer (KYC) checks to verify user identities, Anti-Money Laundering (AML) procedures, and other customer due diligence measures.
The new regulations imposed by the FCA require crypto-asset businesses to comply with specific guidelines and regulations. Although the rules may appear to be stringent and difficult to comply with, they are meant to protect investor safety and promote transparency and compliance with the law.