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FCA Says Bankman-Fried FTX Cryptocurrency Exchange Not Regulated in the UK

  • Richard Marley
  • September 19, 2022
  • 3 minutes read
  • 57
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FCA warned crypto exchange FTX due to their unauthorized operations. The financial regulator clearly said that all financial services by firms and individuals need to get registered with FCA. 

Cryptocurrency exchange FTX operating in the U.K. received a warning from FCA, the Financial Conduct Authority, one of the top financial regulators in Britain. According to FCA, FTX is working 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.

On Friday, FCA published the warning on its website regarding FTX’s unauthorized operations. The regulators stated, “We believe this firm may be providing financial services or products in the U.K. without our authorization.”

The FCA explained that FTX targets investors in the United Kingdom without authorisation. According to the regulator, UK firms involved in crypto assets must comply with the revised “Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations,” and register with the Financial Conduct Authority. 

FCA warned, “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 crypto exchange is endeavoring to expand its services in Europe. As per the company’s stance, it had secured consent from the Cyprus Securities and Exchange Commission (CySEC). 

The U.K government made its plan to support crypto adoption in May. The regulator said, “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.”

In April, Exchequer’s former chancellor, Rishi Sunak, said, “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.”

Sunak’s former colleague Glen says, “We want this country to be a global hub — the very best place in the world to start and scale crypto-companies.” However, under the new prime minister, Liz Truss, the crypto plan of the government may change in the coming time. 

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