The UK’s chief financial regulator, the Financial Conduct Authority (FCA), has issued a warning to Bahama-based crypto exchange FTX, claiming it is operating without authorization. The company joins a growing list of unregistered cryptocurrency-related firms, which outnumber exchanges registered with the FCA.
The warning, released Sept. 16, alleges that the firm “may be providing financial services or products in the UK without authorization.” being done. Addressing potential clients, the FCA states that if things go wrong, they won’t be able to get their money back or fall under the protection of the Financial Services Compensation Program.
The list of crypto companies registered with the FCA included 37 entities, including Crypto.com, which last registered at the end of August. To the FCA in 2022 to get Money Laundering Regulations approval enrolling other companies are eToro UK, DRW Global Markets LTD, Zodia Markets (UK) Limited, Uphold Europe Limited, Rubicon Digital UK Limited and Wintermute Trading LTD.
New cryptocurrency-focused regulations were introduced in January 2020 to allow the FCA to oversee companies operating in the crypto industry and enforce Anti-Money Laundering and Counter-Terrorism Financing regulations.
Despite the lack of clarity on what organizations that do not register with the regulator may encounter, the FCA is certainly not keeping quiet when it comes to enforcement. ePayments, one of the largest electronic payment providers in the UK, shut down its trading operations on September 13, three years after receiving a corresponding order from the FCA over allegations of weakness in financial crime controls.