UK FCA Warns Consumers About Crypto Exchange FTX (Report)

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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.”

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