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Britain’s main financial regulator, the Financial Conduct Authority (FCA), has issued a warning about cryptocurrency exchange FTX operating in the UK without permission. “Almost all businesses and people offering, promoting or selling financial services or products in the UK must be authorized or registered by us,” the regulator said.

FCA warns against operating FTX without permission

The UK’s Financial Conduct Authority (FCA) posted a warning on its website on Friday regarding the FTX crypto exchange. 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 targets investors in the UK. Companies carrying out specific crypto-asset activities in the UK must comply with the amended “Money Laundering, Terrorist Financing and Transfer of Funds (Payer Information) Regulations”, and register with of the CAF.

“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, adding:

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

FTX tried to expand its operations in Europe. The company created FTX Europe in March and said it had secured Cyprus Securities and Exchange Commission (CySEC) approval.

In May, the British government presented its plans for support crypto adoption and affirmed his commitment to regulate stablecoins.

Former Chancellor of the Exchequer Rishi Sunak said in April: “My ambition is to make the UK a global hub for crypto asset technology, and the steps we have outlined today will help ensure that businesses can invest, innovate and grow in this area. country.” His former colleague, Glen, also said, “We want this country to be a global hub – the best place in the world to start and grow crypto companies.” However, the government’s crypto plans could change under the new Prime Minister, Liz Truss.

What do you think of the FCA’s warning about the FTX crypto exchange? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

Image credits: Shutterstock, Pixabay, Wiki Commons

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