UK Financial Conduct Authority (FCA) ‘warning’ about FTX

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2022-09-20 14:22:48

The FCA says the cryptocurrency exchange run by Sam Bankman-Fried is “targeting” consumers without permission in the UK. The text of the warning states that consumers should not trade with FTX.

The Financial Conduct Authority said the Bahamas-based exchange appeared to be offering products and services in the UK illegally.

“This company is not authorized by us and is targeting people in the UK,” the statement said.

FCA’s announcement about the FTX exchange operating in the UK

The move against FTX, one of the largest digital asset exchanges, comes after a fierce battle between the FCA and Binance as the UK ramps up efforts to control the crypto world.

The UK Financial Authority intervened against Binance last year, stating that “complex and high-risk financial products” caused by Binance”significant risk to consumers” and that the world’s largest cryptocurrency exchange has “does not meet the” some basic queries, leaving FCA unsupervised.

Binance, one of FTX’s main competitors, has committed to full regulatory compliance and re-registered to be regulated in the UK. A spokesperson for FTX said it believes the regulator intends to warn consumers about a scam impersonating the exchange because a few of the phone numbers the regulator listed were reported to be related to fraud. However, the spokesperson acknowledged that the website identified by the FCA – – is the actual website of the company. FTX said:

“We are looking into this matter and are in contact with the regulatory authorities. It is important that we issue warnings as quickly as possible and [chúng tôi] Will issue an update if more information becomes available.”

Cryptocurrency exchange and wallet providers must register with the FCA for anti-money laundering oversight if their digital asset operations are “conducted in the UK business manner”, according to a guideline. of the FCA.

FTX joins the latest clash between UK authorities and foreign digital asset firms
FTX joins the latest clash between UK authorities and foreign digital asset firms

The FCA and other financial regulators around the world have faced the challenge of trying to protect consumers and impose standards in the cryptocurrency market, where many of the largest groups are based. in foreign jurisdictions. Both the Cayman Island-based registered FTX and Binance have set up US branches to appease US authorities.

FTX Europe this month announced that the Cyprus financial regulator has granted it an investment company license as the crypto firm ramps up expansion across the continent. Bankman-Fried, chief executive officer of FTX, said at the time: “Securing this license in the European Union is an important step towards achieving our goal of becoming one of the most regulated exchanges in the world.” FCA says UK customers dealing with FTX will not have access to UK user protections such as Financial inspection or Financial Services compensation in the event of a mishap. .

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