The UK’s Financial Conduct Authority (FCA) said FTX is operating in the country without a permit, Financial Times report September 19th.
According to the FCA, those with FTX “do not have access to the Financial Ombudsman Service and are not protected by the Financial Services Compensation Scheme (FSCS), so they are unlikely to get their money back if something goes wrong.”
Financial authorities have taken a tough stance against cryptocurrency and fintech companies operating without a permit, requiring registration for all companies that provide financial services.
Earlier this year, the FCA raised concerns about a transaction involving EQONEX, a financial services company and subsidiary of Binance.
The recent regulatory warnings on FTX are similar to previous notices on Binance.Despite these warnings, the exchange remains accessible in the UK
Crypto.com, Kraken and Gemini are registered with the FCA
While the FCA has warned residents about FTX, other global crypto exchange platforms such as Crypto.com, Kraken and Gemini are registered and can operate within the county.
August, Crypto.com clearly Have received regulatory approval from the FCA.
in the meantime, report The exchange has revealed that it is on the FCA’s Temporary Registration Scheme list because it complies with the country’s strict AML standards.
Fewer than 40 crypto-focused firms have secured full registration, and more than 70 have withdrawn their applications and ceased operations in the country.
The FCA argues that its rigorous approach to registering cryptocurrency companies is to protect consumers. Regulators have also banned the sale of derivatives based on cryptocurrency prices to retail investors.
FTX Secures License in Europe
According to Sept. 15, FTX has secured a license from the Cyprus Securities and Exchange Commission (CySEC) to operate as an investment company in Europe. press statement.
Regarding licensing, Sam Bankman-Fried said:
“Securing this license in the European Union is an important step towards achieving our goal of becoming one of the most regulated exchanges in the world.”
