Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
UK Regulator Warns Crypto Exchange FTX Offers Services Without Authorization – Regulating Bitcoin News
The UK’s top financial regulator, the Financial Conduct Authority (FCA), has issued a warning about cryptocurrency exchange FTX operating in the UK without authorisation. “Almost all firms and individuals offering, promoting or selling financial services or products in the UK must be authorized or registered by us,” the regulator said.
FCA warns of FTX operating without authorisation
The UK Financial Conduct Authority (FCA) published a warning on its website on Friday regarding crypto exchange FTX. The regulator said in detail:
We believe that this firm may offer financial services or products in the UK without our authorisation.
The FCA explained that FTX is not authorized but targets investors in the UK. Firms carrying out specific crypto-asset activities in the UK must comply with the amended “Money Laundering, Terrorist Financing and Transfer of Funds (Payer Information) Regulations” and register with the FCA.
“You won’t have access to the Financial Ombudsman Service or be protected by the Financial Services Compensation Scheme (FSCS), so you’re unlikely to get your money back if things go wrong,” the financial regulator warned, elaborating:
Almost all firms and individuals who offer, promote or sell financial services or products in the UK must be authorized or registered by us.
FTX has tried 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 UK government outlined its plans to support crypto adoption and reaffirmed its commitment to regulating stablecoins.
Former Chancellor of the Exchequer Rishi Sunak said in April: “It is my ambition to make the UK a global hub for crypto-asset technology and the measures we have outlined today will help ensure that 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 of the FCA warning on crypto exchange FTX? Let us know in the comments section below.
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