UK Regulator Warns Crypto Exchange FTX Is Providing Services Without Authorization

UK Regulator Warns Crypto Exchange FTX Is Providing Services Without Authorization

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.

What do you think about the FCA warning about crypto exchange FTX? Let us know in the comments section below.

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