The UK's Financial Conduct Authority (FCA), which governs the finance sector, has informed that cryptocurrency exchange FTX may be providing financial services or goods in the nation without a license. The warning was published on FCA's official website.
All individuals and organizations participating in the offering, advertising, or sale of financial services or products in the UK, in accordance with the Financial Conduct Authority, must be licensed or registered with the regulator.
Regulations against money laundering require bitcoin businesses operating in the UK to register with the agency.
In late 2020, the FCA was formed as the UK's anti-money laundering and counter-terrorism financing agency. Out over 100 crypto businesses lodged registration requests to the FCA. The FCA claims that cryptocurrency firms operating in the UK need to have adequate monitoring and supervision permits to prohibit money laundering and other illicit behavior including financing terrorism.
Only 33 businesses have received continuous FCA registration.
Six businesses have already had their provisional licenses revoked without proper authorisation, including cryptocurrency market maker B2C2 Ltd. and the digital banking applications Wirex Ltd. and Trastra Ltd.
Investors in the UK who use FTX services will not be covered by the UK Financial Services Compensation Scheme or eligible to use the Financial Ombudsman service, according to UK regulators, the Financial Conduct Authority (FSCS).
Investors should however take extreme caution when dealing with this unregistered organization since, should anything go wrong, they are unable to get their cash back.
As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!
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