The Financial Conduct Authority (FCA), the chief financial regulator in the United Kingdom, issued a warning to Bahama-based crypto exchange FTX, claiming it operates without authorization. The company joined a growing list of unregistered cryptocurrency-related businesses that continue to outweigh those signed up with the FCA.
A warning note, dated Sept. 16, побарувања that the firm “may be providing financial services or products in the UK without authorization.” Addressing the potential customers, the FCA notes that they won’t be able to get their money back or seek the protection of the Financial Services Compensation Scheme “if things go wrong.”
By the end of August, the list of crypto companies registered with the FCA included 37 entities, with the Crypto.com becoming the latest to join it. Other firms that managed to go through the registration process in 2022 to achieve Money Laundering Regulations одобрување were eToro UK, DRW Global Markets LTD, Zodia Markets (UK) Limited, Uphold Europe Limited, Rubicon Digital UK Limited and Wintermute Trading LTD.
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New cryptocurrency-focused regulations were instituted in January 2020 to allow the FCA to supervise businesses operating in the space and enforce AML and counter-terrorism financing regulations. As the spokesperson for the FCA објасни за Cointelegraph back in August:
„Успешната регистрација зависи од тоа дали фирмата ги исполнува минималните стандарди што ги очекуваме да спречи перење пари и финансирање тероризам, а видовме премногу црвени знамиња за финансиски криминал пропуштени од бизнисите со крипто средства кои бараат регистрација“.
Although there is no clear understanding of what the immediate repercussions for the unregistered entities might look like, the FCA is surely no vegetarian when it comes to enforcement. On Sept. 13, one of the largest electronic payment providers in the United Kingdom, ePayments, closed its business operations three years later after receiving a respective order from the FCA due to alleged weaknesses in its “financial crime controls.”
It isn’t the first time lately that FTX has caught the attention of the regulators. On Aug. 19, the Federal Deposit Insurance Corporation (FDIC) issued престане и не сакаш писмо for the company, alleging that it had misled the public about certain cryptocurrency-related products being insured by FDIC.
Source: https://cointelegraph.com/news/british-regulator-lists-ftx-crypto-exchange-as-unauthorized-firm