Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
The FCA warned about the possibility of not getting one’s asset with FTX back “if things go wrong.”
British regulator the Financial Conduct Authority (FCA) has issued a warning note to FTX crypto exchange, claiming it is operating without authorization. FTX has now found itself on the increasing names on the FCA list that comprises unregistered crypto-related businesses. The British financial watchdog issued the warning on the 16th of September, titled “FTX”.
According to the warning, FTX is not registered by the FCA and is targeting people in the UK. Meanwhile, the regulator stated that nearly all firms and individuals that offer, sell or promote financial services or products in the UK need FCA authorizations or registrations. The chief financial regulator in the UK claimed that FTX did not follow the requirement.
“We believe this firm may be providing financial services or products in the UK without our authorization.”
FCA Lists FTX as ‘Unauthorized Firm’
The financial watchdog further attempted to explain why UK residents should be “wary of dealing with this unauthorized” company. It also mentioned investors’ protection. The agency notes that investors are under the protection of the Financial Services Compensation Scheme (FSCS). Also, they do not have access to the Financial Ombudsman Service. Also, the FCA warned about the possibility of not getting one’s asset with FTX back “if things go wrong.”
Explaining further, the UK regulator provided a link to the Financial Services Register for investors to check crypto companies that are registered and authorized in order to make informed decisions.
“If you used an authorized firm or registered firm, access to the Financial Ombudsman Services and FSCS protection will depend on the investment you are making, the service the firm is providing, and the permissions the firm has. If you would like further information about protection, the authorized or registered form should be able to help.”
Notably, FTX recently caught the attention of regulators in August. The crypto company received a cease and desist letter from the Federal Deposit Insurance Corporation (FDIC). The Corporation alleged that the company misled the public about specific crypto-related products being insured by the FDIC.
British Regulator Lists 37 Registered Crypto Entities
As of August, there were 37 entities that have completed their registrations with the FCA. Crypto.com also got the green light from the regulator to carry out “certain crypto asset activities” in the UK. More firms like Zodia Markets (UK) Limited and eToro UK also went through the registration process in 2022. After the registration process, they were able to receive Money Laundering Regulations approval.
Since January 2020, the FCA has enforced AML and counter-terrorism financial regulations on crypto-focused businesses. A spokesperson explained that a firm needs to meet the minimum standards for a successful registration. The representative mentioned that there have been “too many financial crime red flags missed by the crypto asset businesses seeking registration.”