UK FCA Warns Consumers About Crypto Exchange FTX (Report)

The top financial regulator in the United Kingdom – the Financial Conduct Authority (FCA) – reportedly said that the cryptocurrency platform FTX does not have the necessary license to provide products or services in the country.

The trading venue has been on a roll in the past several months, despite the market declines. Earlier this year, it established regional headquarters in Dubai, while months later, it launched an exchange in Japan to service local cryptocurrency traders and investors.

• According to a Bloomberg coverage, the UK watchdog warned local consumers that the crypto exchange led by Sam Bankman-Fried – FTX – is not authorized to operate in the nation.
• The regulator went further, claiming that the platform “is targeting people in the UK,” while investors are “unlikely to get their money back if things go wrong.” The country’s ombudsman is also unable to help users in case of a financial loss, the FCA added.
• In April this year, the agency required all cryptocurrency firms that provide services in the UK to meet certain anti-money laundering standards. Popular exchanges like Kraken and CryptoCom completed that step and received the necessary green light from the watchdog.
• Last year, the FCA claimed that Binance Markets Limited (a UK-based subsidiary of Binance) is not permitted to undertake any regulated activity in the UK. As such, the entity was ordered to stop providing derivative products.
• In the next couple of months, Binance hired more personnel and rolled out mandatory Know-Your-Customer (KYC) requirements to obtain the regulatory approval. Both sides settled the issues at the end of August 2021 when the watchdog stated:

“On June 25th, 2021, the FCA imposed requirements on Binance Markets Limited. The firm complied with all aspects of the requirements.”