- Serious repercussions may arise from someone not following the new set of rules.
- Exchanges are taking the required steps to comply with the laws as the FCA has been firm.
The Financial Conduct Authority (FCA), the United Kingdom’s highest financial regulator, issued a warning list to many prominent cryptocurrency exchanges on Sunday, October 8 for advertising their services without the necessary authorization.
As of October 8th, the United Kingdom’s financial promotion legislation now includes crypto asset service providers worldwide. All crypto exchanges, regardless of where they are based, are now required by law to clearly post danger warnings to British customers and follow more stringent technological regulations. This involves setting up a cooling-off period of 24 hours for new clients.
The generic warning to over 140 firms read:
“This firm may be promoting financial services or products without our permission. You should avoid dealing with this firm”.
Stringent Penalties
Serious repercussions may arise from someone not following these rules. This may lead to demands for the removal of websites and applications, unlimited penalties, and even jail time. A representative for Huobi, also known as HTX, has stated for the record that the firm does not market or operate inside the United Kingdom.
Moreover, KuCoin’s CEO, Johnny Lyu, issued a statement through email expressing the company’s dedication to tailoring its offerings to comply with the laws and regulations of each jurisdiction in which it operates. Also, currently, KuCoin is not actively functioning in the UK. Exchanges are taking the required steps to comply with the laws as the FCA has been intensifying its grip on the cryptocurrency sector.
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