UK Regulator Warns Crypto Exchange FTX Is Providing Services Without Authorization
Britain’s top financial regulator, the Financial Conduct Authority (FCA), has issued a warning about cryptocurrency exchange FTX operating in the U.K. without authorization. “Almost all firms and individuals offering, promoting or selling financial services or products in the U.K. have 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 may be providing financial services or products in the U.K. without our authorization.
The FCA explained that FTX is not authorized but is targeting investors in the U.K. Firms carrying out specific crypto asset activities in the U.K. must comply with the amended “Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations,” and register with the FCA.
“You will not have access to the Financial Ombudsman Service or be protected by the Financial Services Compensation Scheme (FSCS), so you are unlikely to get your money back if things go wrong,” the financial regulator warned, elaborating: Almost all firms and individuals offering, promoting or selling financial services or products in the U.K. have to be authorized or registered by us.
FTX has been trying to expand its operations in Europe. The company 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 regulate stablecoins.
Former Chancellor of the Exchequer Rishi Sunak said in April: “It’s my ambition to make the U.K. a global hub for crypto asset technology, and the measures we’ve outlined today will help to ensure firms can invest, innovate, and scale up in this country.” His former colleague, Glen, similarly said: “We want this country to be a global hub — the very best place in the world to start and scale crypto-companies.” However, the government’s crypto plans may change under the new prime minister, Liz Truss. Tags in this story ftx, FTX FCA, FTX unauthorized, FTX unauthorized UK, FTX unlicensed UK, FTX unregistered FCA, FTX unregistered UK
What do you think about the FCA warning about crypto exchange FTX? Let us know in the comments section below. Kevin Helms
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. DOJ Launches Network of Over 150 Federal Prosecutors to Combat Criminal Uses of Crypto REGULATION | 2 hours ago ECB Chooses Amazon and 4 Other Companies to Help Develop Digital Euro REGULATION | 20 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleJPEX Announces Partnership Extension with Western Sydney Wanderers Next articleTrudeau Criticizes Opponent’s Crypto Advice, Kiyosaki Pushes the Assets Ahead of the ‘Biggest Economic Crash in History’ — Bitcoin.com News Week in Review Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItSEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale
Grayscale Investments" CEO explains that the U.S. Securities and Exchange Commission (SEC) could potentially violate the Administrative Procedure Act by not approving a spot bitcoin exchange-traded fund (ETF). SEC Approving Spot Bitcoin ETF Is "a Matter of When and Not ... read more.Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether