9-10-2023 (LONDON) The Financial Conduct Authority (FCA), the United Kingdom’s financial markets regulator, had a busy Sunday on October 8th, as it expanded its warning list of non-authorized firms that customers are advised to steer clear of, adding several crypto exchanges to the list.
In a significant move, the FCA included a total of 143 new entities in this warning list, encompassing major exchanges such as Huobi-owned HTX and KuCoin. The warning list does not provide extensive details but rather conveys a straightforward message: “You should avoid dealing with this firm.”
However, it’s important to note that in the UK, firms authorized to “carry out crypto asset activities” must either be registered with the FCA or granted temporary status to operate. In July, Jayson Probin, the crypto financial promotions lead at the FCA, emphasized that non-compliance could lead to criminal charges, stating, “We will take robust action against persons illegally promoting to UK consumers. This may include, but is not limited to, placing firms on our warning list, requesting take downs of websites, social media accounts, apps, and all other promotions that are in breach, and enforcement action.”
In August, the FCA disclosed that since 2020, it had received 291 applications for registration and approved only 38 of them, accounting for approximately 13%. As of the time of this publication, the FCA’s list of registered crypto asset providers comprises 42 entities, including Bitstamp, Revolut, and Gemini.
Notably, PayPal recently suspended crypto transactions for its UK customers until it can align with the FCA’s requirements. Likewise, Dubai-based cryptocurrency exchange Bybit halted all its services in the UK in late September due to what it referred to as “regulatory changes.”
