Britain’s top financial regulator, the Financial Conduct Authority (FCA), has issued a warning about cryptocurrency exchange FTX operating in the U.K. without authorization. “Almost all firms and individuals offering, promoting or selling financial services or products in the U.K. have to be authorized or registered by us,” said the regulator.
FCA Warning About FTX Operation Without Authorization
On Friday, the U.K. Financial Conduct Authority published an advisory on its website regarding cryptocurrency exchange FTX. It provided:
This firm could be offering financial products or services in the U.K without our permission, according to us.
The FCA explained that FTX is not authorized but is targeting investors in the U.K. Firms carrying out specific crypto asset activities in the U.K. must comply with the amended “Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations,” and register with the FCA.
“You 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 regulator warned, elaborating:
Nearly all individuals and firms offering or promoting financial products or services in the U.K. must be registered or authorized by us.
FTX Europe has tried to grow its business in Europe. FTX Europe was established by the company in March and has been approved by Cyprus Securities and Exchange Commission.
The U.K government announced its intentions to encourage crypto adoption in May and reiterated its determination to regulate stablecoins.
Former Chancellor of the Exchequer Rishi Sunak said in April: “It’s my ambition to make the U.K. a global hub for crypto asset technology, and the measures we’ve outlined today will help to ensure 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.
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