UK FCA Warns of FTX Unauthorised Provision of Financial Services to Investors
The U.K.’s Financial Conduct Authority(FCA), the regulator of the financial services industry in the United Kingdom, has issued a warning on its official website (FCA) that cryptocurrency exchange FTX may be providing financial services or products in the country without authorization.
The UK regulator, the Financial Conduct Authority, says all companies and individuals offering, promoting, or selling financial services or products in the UK must be authorised or registered by the regulator.
According to money laundering regulations, cryptocurrency companies doing business in the UK must register with the agency.
After the FCA became the UK’s counter-terrorism financing and anti-money laundering agency in late 2020, more than 100 cryptocurrency companies applied to register with the agency.
According to the FCA, cryptocurrency companies operating in the UK must have sufficient inspection and control licenses to deter money laundering and other criminal incidents such as terrorist financing.
Only 33 firms have achieved permanent registration with the FCA.
Previously, six companies — including crypto market maker B2C2 Ltd. and crypto-digital banking apps Wirex Ltd. and Trastra Ltd. — were removed from provisional registrations without adequate authorization.
UK regulators, the Financial Conduct Authority, said UK investors using FTX services will not be able to use the Financial Ombudsman service or be protected by the UK Financial Services Compensation Scheme (FSCS).
So investors need to be very wary of dealing with this unauthorized company because they are unlikely to get their money back if anything happens.
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