Posted on the UK Financial Conduct Authority (FCA) registry today, peer-to-peer lender Rebuildingsociety was denied the ability to approve any financial promotion for a “Qualifying Cryptoasset for communication by an unauthorized person” and must withdraw any current promotion by tomorrow. After Rebuildingsociety has withdrawn all promotions, it must then contact the FCA to confirm it has complied with the requirements.
In a blog post, Rebuildingsociety refuted the insinuations made by the FCA, claiming that they “have gone above and beyond the requirements to protect consumers in respect of its service to approve financial promotions for cryptoasset firms.”
Rebuildingsociety had partnered with Binance to provide compliance for the crypto exchange. In a recent statement, Binance explained:
“In compliance with the updated Financial Promotions Regime, Binance has launched a new domain for UK users and partnered with Rebuildingsociety.com Limited, which will approve Binance’s marketing and communications materials. Rebuildingsociety.com is an FCA-regulated firm which is authorised to approve crypto marketing and communications materials as an ‘S21 approver’. This partnership and new domain means that we can offer services in the UK in compliance with the updated Financial Promotions Rules.”
It appears that this partnership is now at loggerheads and, perhaps, in peril.
The company had announced the new line of business this past August in advance of new rules kicking in regarding crypto promotions in the UK. Rebuildingsociety believed that its existing regulatory status and regulatory experience would benefit its ability to provide the new service.
“As a firm, we have sought to bring in additional resources into our team to bolster the competency and expertise in relation to cryptoassets. In doing so we have done so in accordance with the best reading of the guidance and policy statements, which do not provide much by way of clear guidance on what is expected of firms in this regard.”
There is, of course, the possibility that the issue was not so much with Rebuildingsociety but the fact that Binance is under the scrutiny of the US SEC along with a potential action by the US Department of Justice.
Rebuildingsociety has stated it will appeal the decision while criticizing the last-minute denial.