Cryptocurrency prices slid Tuesday after crypto exchange giant Binance suspended access for new users in the U.K. The company also halted dollar withdrawals from its U.S. affiliate, Binance.US, on Monday. Binance's publicly-traded rival Coinbase climbed Tuesday.
Binance Roadblocks
Binance stopped allowing new users in the U.K. to register for its platform Monday evening. The move was an effort to comply with new regulations that restrict promotions for overseas digital asset companies, Binance said Monday. The Financial Conduct Authority requires nonregistered crypto platforms to collaborate with firms the FCA has authorized for marketing. That's under new rules enacted on Oct. 8.
Binance said it partnered with peer-to-peer platform rebuildingsociety.com on Oct. 8. Last Tuesday, the FCA announced rebuildingsociety.com was not authorized to approve crypto advertisements.
"We are working closely with the FCA to ensure that our users are not harmed by these developments," Binance wrote in a blog post, CoinDesk reported. Binance added it is "looking to find another suitable FCA-authorized firm to approve our financial promotions as soon as possible."
Existing U.K. users still have access to the exchange's services if they complete the "Investor Declaration and Appropriateness Test." However, they will not have access to new products or services during the waiting period.
Elsewhere, the exchange's U.S. affiliate, Binance.US, said customers can no longer withdraw U.S. dollars from the platform. It made the announcement in a terms of service update Monday.
Users must first convert dollars into stablecoins or another cryptocurrency in order to withdraw funds, according to the announcement. Binance.US also updated the language of its terms, saying deposits are not protected by Federal Deposit Insurance Corporation protections.
The company earlier said Binance.US accounts were insured up to $250,000 in a now-deleted blog post from 2019, Decrypt reported.
Bitcoin Price
Bitcoin price rose back above $28,500 late Tuesday after briefly falling near $28,000 early in the morning.
Ethereum eased slightly to trade around $1,560 while cryptocurrencies broadly faded.
Rival exchange Coinbase's COIN stock swung nearly 3% higher Tuesday.
Meanwhile, bitcoin miner Marathon Digital rallied 4.3%. Hut 8 Mining rose more than 2%. Riot Platforms advanced about 2.7% Tuesday.
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