September 19, 2022

FTX got "on the radar" of the regulator in the UK

On Friday, September 16, the Financial Conduct Authority (FCA) issued a public warning to investors regarding cryptocurrency exchange FTX. The regulator condemned the company for operating without a license and also urged the site to register.

The agency said in a statement that FTX "targets" residents of the country, while it is "not authorized" to do business in the local market. The FCA also stressed that investors would "hardly see their money" in the event of bankruptcy.

Recall that in April the UK launched a registry of digital asset providers. This innovation requires fintech firms and exchanges to comply with FCA anti-money laundering regulations.

In particular, companies must register. FTX as well as Binance have not received a license. That said, both exchanges insist they are seeking full legalization. These countermeasures against some of the largest cryptocurrency exchanges on the market are part of the country's global strategy to tighten controls over digital assets. Recall that in August, the FCA published a new set of rules for advertising such investments.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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