- FCA claimed that FTX has been operating in the U.K. without authorization.
- The move against FTX comes after an ongoing battle between the FCA and Binance.
- To date, only 33 firms have been authorized by the FCA.
Britain’s watchdog Financial Conduct Authority (FCA) has claimed that cryptocurrency exchange FTX has been operating in the U.K. without authorization. The Bahama-based exchange joined a growing list of unregistered cryptocurrency-related businesses that the FCA does not authorize.
The government body issued a notice on its official website and quoted:
It is believed FTX may be providing financial services or products in the U.K. without our authorization. All firms and individuals offering, promoting, or selling financial services or products in the U.K. have to be authorized or registered by us. FTX has not been authorized by us and is targeting people in the U.K.
According to the advisory issued on the website, FCA noted that people using FTX as an exchange would not be able to get their money back or seek the protection of the Financial Services Compensation Scheme (FSCS) if anything goes wrong.
The move against FTX comes after an ongoing battle between the FCA and Binance as the U.K. tightened its regulations against cryptocurrencies. The FCA intervened against Binance last year, stating that its “complex and high-risk financial products” posed “a significant risk to consumers” and that the crypto exchange had failed to respond to some of its basic queries.
As per the FCA, cryptocurrency companies operating in the U.K. must have adequate inspection and control licenses to dissuade money laundering and other criminal incidents such as terrorist financing.
As of now, only 33 firms are authorized by the FCA. On the other hand, six companies, including crypto market maker B2C2 Ltd., crypto-digital banking apps Wirex Ltd., and Trastra Ltd., were removed from provisional registrations without adequate authorization.