By Mark Ackman
The Financial Conduct Authority (FCA), which is the top financial regulator in Britain, recently issued a warning about the FTX crypto exchange.
According to the regulator, the crypto exchange does not have any authorization to provide its services in the United Kingdom.
It said that all companies and individuals that offer, sell, or promote financial products or services in Britain are required to obtain authorization from the FCA.
No authorization
The UK’s financial regulator published the warning about FTX on its website on Friday. It said that the company was offering financial products and services in the country without their authorization.
According to the Financial Conduct Authority (FCA), the crypto exchange does not have the authorization to operate in Britain, yet it targets investors in the country.
The FCA said that companies that engage in specific crypto activities in the UK have to register with the regulatory authority and also comply with the amended policies of terrorist financing, money laundering, and transfer of funds.
The latter includes providing information on the payer. The financial regulator said that anyone using the exchange’s services would not be protected.
This is because they will not be protected under the Financial Services Compensation Scheme (FSCS) or be able to access the Financial Ombudsman Service, which means they will not get their money back if something was to go wrong.
It said that whether individuals or companies, anyone operating in the UK and offering financial products and services have to register with the FCA and obtain authorization.
FTX expansion
The FTX crypto exchange has been trying to expand its operations and Europe is its latest target for this purpose.
Back in March, FTX Europe was established and the company disclosed that it had obtained approval from the Cyprus Securities and Exchange Commission (CySEC).
This is recognized as one of the top regulatory bodies in Europe. As a matter of fact, FTX is also trying to expand its services to the US retail audience.
The crypto exchange purchased the naming rights to the NBA Arena of Miami Heat, which was previously known as the American Airlines Center.
It also ran crypto ads during the Super Bowl, which featured Larry David, and has courted high-profile brand ambassadors and investors like Gisele Bundchen and Tom Brady.
UK regulation
The UK government had disclosed its plans for supporting crypto adoption back in May and had also affirmed its commitment for stablecoin regulation.
Rishi Sunak, the former Chancellor of the Exchequer, had said back in April that their ambition was to make the country a global hub for crypto.
Therefore, they developed measures that would help companies in innovating, invest, and expand in the UK.
Glen, a former colleague, had also echoed the same sentiments. But, things are uncertain for now Britain has a new prime minister.
Lizz Truss was chosen as the new premier this month and she has not said much about crypto, so the government’s crypto plans could change.