Home Finance UK regulator warns that FTX is providing services without authorization

UK regulator warns that FTX is providing services without authorization

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The UK’s top financial regulator, the Financial Conduct Authority (FCA), has issued a warning about crypto-currency exchange FTX operating in the UK without authorization. “Almost all companies and individuals offering, promoting or selling financial services or products in the UK must be licensed or registered by us“, the regulator said.

FCA warns against FTX operating without permission

The U.K.’s Financial Conduct Authority (FCA) issued a warning on its website Friday about crypto-currency exchange FTX. The regulator detailed:

We believe this company may be providing financial services or products in the UK without our permission.

The FCA explained that FTX is not licensed but is targeting investors in the UK. Firms that engage in specific crypto-asset activities in the UK must comply with the “Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations“amended and register with the FCA.

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You won’t have access to the Financial Ombudsman Service and won’t be protected by the Financial Services Compensation Scheme (FSCS), so it’s unlikely you’ll get your money back if things go wrong“The financial regulator warned, elaborating:

Almost all firms and individuals offering, promoting or selling financial services or products in the UK must be licensed or registered by us.

FTX has been trying to expand its operations in Europe. The company established FTX Europe in March and said it had received approval from the Cyprus Securities and Exchange Commission (CySEC).

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In May, the U.K. government outlined its plans to support the adoption of crypto-currencies and affirmed 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 cryptoasset technology, and the measures we have outlined today will help ensure that businesses can invest, innovate and scale in our country.“His former colleague, Glen, also stated, “We want this country to be a global hub – the best place in the world to create and develop crypto-companies.“However, the government’s plans for crypto could change under the new prime minister, Liz Truss.