UK regulator says FTX has no authorization to operate in the country

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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.”

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