FCA Pens Warning to FTX on Violation of Set Rules

Updated:

The UK Financial Conduct Authority (FCA) published a warning on Friday directed at crypto exchange FTX, alleging that the exchange was providing financial services without authorization from the agency.

The regulatory watchdog revealed that giant cryptocurrency exchange FTX was not authorized in the UK but is offering services to resident investors. According to dictates, companies facilitating specific cryptocurrency activities in the UK must go by the rules outlined in the amended “Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations,” and register with the FCA.

FCA Warns Investors About Absence of Coverage on FTX Investment

The financial watchdog warned investors: “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,” adding:

“Almost all firms and individuals offering, promoting, or selling financial services or products in the UK have to be authorized or registered by us.”

This comes as FTX ramp up efforts to expand its base into Europe and other parts of the world. The crypto firm created FTX Europe in March 2022, noting that it had received approval from the Cyprus Securities and Exchange Commission (CySEC).

Also, in May, the UK government rolled out its plans to support cryptocurrency adoption and reassured the public of its commitment to regulate Stablecoins.

Former Chancellor of the Exchequer Rishi Sunak noted earlier this year: “It’s my ambition to make the UK 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.” Speaking in a similar tone, Sunak’s former colleague, Glen, noted: “We want this country to be a global hub — the very best place in the world to start and scale crypto-companies.”

That said, the laid-out crypto plans by the government may change with the emergence of a new Prime Minister, Liz Truss.

 

You can purchase Lucky Block here. Buy LBLOCK

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.