The Financial Conduct Authority (FCA) of the United Kingdom has issued a warning to UK residents about 143 entities, including popular crypto exchanges HTX and KuCoin, operating within its jurisdiction without authorization. The FCA stated that individuals should avoid dealing with these firms as they would not be covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme if anything goes wrong.
This warning serves as a reminder that all financial firms operating in the UK must be authorized or registered with the FCA. The regulator’s register currently lists only 42 approved firms, including well-known names such as Bitstamp, eToro, Paysafe, Komainu Revolut, and Gemini, that are authorized to provide crypto-related activities in the region.
At the time of publication, HTX and KuCoin had not responded to requests for comment from CryptoSlate.
The publication of this list comes as the FCA’s Oct. 8 deadline approaches for crypto entities to comply with its new financial promotions regime. This regime introduces guidelines for crypto firms before they can promote their products within the UK. The FCA has vowed to strictly enforce this regulation and has warned that violators could face penalties including two years imprisonment, an unlimited fine, or both.
In response to the regulations, several crypto firms, including OKX and Binance, have restructured their businesses to remain in compliance. Binance recently launched a new subpage specifically for its UK customers, allowing them to deposit and withdraw fiat and crypto assets, engage in spot and margin trading activities, and access features such as conversions, NFT markets, and crypto lending.
OKX, on the other hand, has introduced a new user experience tailored to the UK market to align with FCA regulations. The revamped interface includes a crypto risk advisory, as mandated by the FCA, and the exchange has streamlined its crypto offerings to around 40 assets.
However, not all cryptocurrency firms have been able to meet the new regulatory standards. PayPal and Bybit have suspended their services for UK clients as they work towards compliance.
The FCA’s warning serves as a reminder to UK residents to exercise caution when dealing with crypto entities and to ensure that they are authorized or registered with the regulator. By following these guidelines, individuals can protect themselves and their investments in the fast-growing crypto industry.
More detail via CryptoSlate here… ( Image via CryptoSlate )