The UK’s Financial Conduct Authority (FCA) has issued a consumer warning against cryptocurrency exchange FTX for operating under the jurisdiction of the UK watchdog without authorization. The FCA recently compiled a list of digital asset companies that have registered and complied with the Money Laundering, Terrorist Financing, and Funds Transfer Regulations (Information on Payer) 2017 since August 2020. Thus far, the list on 37 firms includes crypto exchanges Gemini, Kraken, Galaxy Digital, and eToro, among others, with Challenger Bank Revolut on provisional registration status.
one in StatementThe FCA stated that “virtually all firms and individuals offering, promoting or selling financial services or products in the UK must be authorized or registered by us” and that FTX “is not authorized by us and may target individuals in the UK”. Used to be.”
However, it remains to be seen whether FTX will face immediate effects from the warning or whether they will have the opportunity to discuss their case with the regulator.
It is worth noting that the FCA oversees over 50,000 financial companies in the UK to ensure that they comply with regulations. This requires crypto-related companies to register and comply with anti-money laundering regulations, including the enforcement of KYC restrictions for customers.
The warning against Sam Bankman-Friend’s multi-billion-dollar powerhouse is another example of the FCA sounding the alarm over the digital asset sector. The regulator has been keeping a close eye on the space since the digital asset boom in 2021, warning companies against deceptive marketing campaigns and Ban all bitcoin ATMs (via BBC) in the country.
It was one of several regulators to move against Binance over its regulatory practices last year, posting a similar warning about FTX that the world’s top cryptocurrency exchange posed “a significant risk” to UK consumers. .
Binance made several major changes, including introducing mandatory KYC restrictions and reducing its maximum leverage offering from 100x to 20x in response to regulatory attention.