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UK Regulator Warns Crypto Exchange FTX OFFERS Services Without Authorization

UK Regulator Warns Crypto Exchange FTX Is Providing Services Without Authorization

Britains top financial regulator, the Financial Conduct Authority (FCA), has issued a warning about cryptocurrency exchange FTX operating in the U.K. without authorization. Virtually all firms and people offering, promoting or selling financial products in the U.K. need to be authorized or registered by us, said the regulator.

FCA Warns About FTX Operating Without Authorization

The U.K. Financial Conduct Authority (FCA) published a warning on its website Friday regarding crypto exchange FTX. The regulator detailed:

We believe this firm could be providing financial products in the U.K. without our authorization.

The FCA explained that FTX isn’t authorized but is targeting investors in the U.K. Firms undertaking specific crypto asset activities in the U.K. must adhere to the amended Money Laundering, Terrorist Financing and Transfer of Funds (Info on the Payer) Regulations, and register with the FCA.

You won’t get access to the Financial Ombudsman Service or be protected by the Financial Services Compensation Scheme (FSCS), which means you are unlikely to really get your cash back if things fail, the financial regulator warned, elaborating:

Virtually all firms and people offering, promoting or selling financial products in the U.K. need to be authorized or registered by us.

FTX has been attempting to expand its operations in Europe. The business established FTX Europe in March and said it had secured approval from the Cyprus Securities and Exchange Commission (CySEC).

IN-MAY, the U.K. government outlined its plans to support crypto adoption and affirmed its commitment to modify stablecoins.

Former Chancellor of the Exchequer Rishi Sunak said in April: Its my ambition to help make the U.K. a worldwide hub for crypto asset technology, and the measures weve outlined today will ensure firms can invest, innovate, and scale up in this country. His former colleague, Glen, similarly said: We wish this country to become a global hub the most effective place in the planet to start out and scale crypto-companies. However, the governments crypto plans may change beneath the new prime minister, Liz Truss.

What do you consider concerning the FCA warning about crypto exchange FTX? Tell us in the comments section below.

Kevin Helms

Students of Austrian Economics, Kevin found Bitcoin in 2011 and contains been an evangelist since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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