UK Regulator Warns Consumers About Crypto Exchange FTX

UK Regulator Warns Consumers About Crypto Exchange FTX
  • The UK’s Financial Conduct Authority issued a consumer warning on FTX.
  • The FCA previously issued a similar warning on Binance.

The UK’s Financial Conduct Authority (FCA)  issued a consumer warning regarding Sam Bankman-crypto Fried’s exchange FTX, stating that it is not allowed by the regulator to offer financial services or products in the country.

The financial Conduct Authority stated:

We believe this firm may be providing financial services or products in the U.K. without our authorization

Targeting People in the UK

Companies and individuals in the UK who provide, promote, or sell financial services or products must be authorized and registered with the FCA. According to certain sources, the regulator stated that FTX, domiciled in the Bahamas, is targeting people in the UK and that investors are unlikely to get their money back if things go wrong because they will not be covered by the country’s ombudsman service and compensation plan.

The FCA previously issued a similar warning on Binance, another large global cryptocurrency exchange, and its activity in the United Kingdom. Several regulators from around the world later issued similar statements about Binance. Under anti-money laundering regulations, cryptocurrency enterprises operating in the UK must register with the FCA. The Cypriot financial authorities recently granted FTX a license that allows it to operate in the EU.

In April , the UK made its crypto asset registration permanent, a scheme that compels enterprises engaging in crypto activity in the country to meet the FCA’s anti-money laundering criteria. While some companies, such as Gemini, Kraken, and Crypto.com, are included, others, such as FTX, Coinbase, and Binance, are not. All are still available to UK customers. 

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Journalism graduate who loves to write and Karate. And I love exploring new concepts and that brought me into the fascinating crypto and blockchain technology…