UK Regulator Warns Crypto Exchange FTX Is Providing Services Without Authorization – The Financial Conduct Authority (FCA), the leading financial watchdog in Britain, has issued a warning regarding cryptocurrency exchange FTX operating illegally in the country. The regulator stated that “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.”
On Friday, the U.K. Financial Conduct Authority (FCA) posted a warning about the cryptocurrency exchange FTX on its website. “We believe this firm may be providing financial services or products in the U.K. without our authorization,” the regulator said in detail.
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The FCA clarified that FTX is not authorized but still aims to attract British investors. Companies that engage in certain crypto asset-related activities in the UK must register with the FCA and adhere to the modified “Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations.”
The financial regulator stated: “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. 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.”
FTX has been trying to expand its operations in Europe. The business announced in March that it had founded FTX Europe and received approval from the Cyprus Securities and Exchange Commission (CySEC). The U.K. government presented its strategies for encouraging the adoption of cryptocurrencies and reaffirmed its commitment to stablecoin regulation in May.
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.”
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“We want our country to be a global hub — the very best place in the world to start and scale crypto-companies,” his former colleague Glen remarked in a similar manner. However, the government’s crypto plans may change under the new prime minister, Liz Truss.
