FTX is flagged by UK financial regulator

FTX - the billion-dollar exchange of "hero" Sam Bankman-Fried has been blacklisted by the UK's Financial Conduct Authority (FCA).

FTX is flagged by UK financial regulator

The UK's Financial Conduct Authority (FCA) has issued a warning, recommending that consumers boycott FTX because the exchange is operating illegally here. 


“This company is providing a financial service or product in the UK without our permission,” the FCA announced on September 16.

In the statement, the FCA emphasized that "most companies and individuals that provide, promote or sell financial services and products in the UK must be authorized or registered by us". Customers associated with unauthorized companies will not be entitled to FCA dispute resolution nor protection by the Financial Services Compensation Scheme (FSCS), which means that assets cannot be claimed if an incident occurs to try. The Financial Conduct Authority also warned that illegal firms that do not stop offering transactions risk being subject to civil to criminal penalties by the FCA.

The crypto regulatory framework established in January 2020 allows the FCA to monitor businesses operating in the space, enforce AML regulations, and finance counter-terrorism. As of the end of August, there were 37 crypto companies registered with the FCA, with Gemini, Kraken, Galaxy Digital and Crypto.com being the newest contenders on this list. 

But it remains unclear whether the FTX exchange will face any immediate consequences or negotiate further with the regulator. A representative of the exchange soon confirmed to Bloomberg that a scammer was impersonating the company and that the phone number that was seized by the FCA was not part of the FTX. 

But this is not the first time FTX has caught the attention of regulators. On August 19, the Federal Deposit Insurance Corporation (FDIC) issued a directive directing FTX US to cease operations and cancel false claims that “mislead” the investing public about the products. FDIC insured.

FCA has a reputation for being strict with digital asset companies over the years. The agency issued a similar warning to Binance at the end of June 2021. Two months later, it was confirmed that Binance was fully compliant, but still unable to conduct regulated business in the UK.

Fox Crypto News summary

Sep 20, 2022

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