The U.K. Financial Conduct Authority (FCA) said FTX operates within the country without authorization, the Financial Times reported on Sept 19.
According to the FCA, those using FTX “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 authority has taken a hard stance against crypto and fintech companies operating without authorization, requiring all companies offering financial services to register.
Earlier this year, the FCA expressed concerns over a deal involving a Binance subsidiary and financial service company, EQONEX.
The regulator’s recent warnings about FTX are similar to earlier notices about Binance. Despite these warnings, the exchanges remain accessible in the U.K.
Crypto.com, Kraken, Gemini are registered with the FCA
While the FCA warned residents about FTX, other global crypto exchange platforms like Crypto.com, Kraken, and Gemini can operate in the county because they are registered.
In August, Crypto.com revealed that it received regulatory approval from the FCA.
Meanwhile, reports revealed that the exchange is on the Temporary Registration Regime list of the FCA as it complies with the country’s strict AML standard.
Less than 40 crypto-focused firms have secured complete registration, with over 70 companies withdrawing their applications and stopping operations in the country.
FCA claims its strict approach to registering crypto firms is to protect consumers. The regulator also banned the sale of derivatives based on crypto prices to retail investors.
FTX secures license in Europe
FTX secured licensing to operate as an investment firm in Europe from the Cyprus Securities and Exchange Commission (CySEC), according to Sept 15 press statement.
Speaking on the licensing, Sam Bankman-Fried said:
“Securing this license in the European Union is an important step in achieving our goal of becoming one of the most regulated exchanges in the world.”