UK regulator says FTX has no authorization to operate in the country UK regulator says FTX has no authorization to operate in the country
UK FCA has taken a hard stance against crypto and fintech companies operating without authorization, requiring all companies offering financial services to register with it.
2 min read
Updated: Sep. 19, 2022 at 4:00 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The U.K. Financial Conduct Authority (FCA) said FTX operates within the country without authorization, the Financial Times reported on Sept 19.
According to the FCA, those using FTX “will not have access to the Financial Ombudsman Service or be protected by the Financial Services Compensation Scheme (FSCS), so you are unlikely to get your money back if things go wrong.”
The financial authority has taken a hard stance against crypto and fintech companies operating without authorization, requiring all companies offering financial services to register.
Earlier this year, the FCA expressed concerns over a deal involving a Binance subsidiary and financial service company, EQONEX.
The regulator’s recent warnings about FTX are similar to earlier notices about Binance. Despite these warnings, the exchanges remain accessible in the U.K.
Crypto.com, Kraken, Gemini are registered with the FCA
While the FCA warned residents about FTX, other global crypto exchange platforms like Crypto.com, Kraken, and Gemini can operate in the county because they are registered.
In August, Crypto.com revealed that it received regulatory approval from the FCA.
Meanwhile, reports revealed that the exchange is on the Temporary Registration Regime list of the FCA as it complies with the country’s strict AML standard.
Less than 40 crypto-focused firms have secured complete registration, with over 70 companies withdrawing their applications and stopping operations in the country.
FCA claims its strict approach to registering crypto firms is to protect consumers. The regulator also banned the sale of derivatives based on crypto prices to retail investors.
FTX secures license in Europe
FTX secured licensing to operate as an investment firm in Europe from the Cyprus Securities and Exchange Commission (CySEC), according to Sept 15 press statement.
Speaking on the licensing, Sam Bankman-Fried said:
“Securing this license in the European Union is an important step in achieving our goal of becoming one of the most regulated exchanges in the world.”
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Kraken
Kraken is a San Francisco-based digital asset exchange in euro volume and liquidity that trades various currencies, including Canadian dollars, US dollars, British pounds, and Japanese yen.
Gemini
Gemini is a regulated digital asset exchange and custodian that allows customers to buy, sell, store, and stake digital assets in a regulated, secure, and compliant manner.
Crypto.com
Crypto.com was founded in 2016 on a simple belief: it’s a basic human right for everyone to control their money, data and identity.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.