As a financial regulatory authority, the FCA warns users that FTX is unregulated. In fact, the exchange is not yet registered with the FCA. However, it must obtain approval from the latter to be able to operate legally in the United Kingdom.
The green light from FCA is paramount
To protect consumers of digital assets, the Financial Conduct Authority (FCA) introduced registration requirements for digital asset companies from August 2020. This regulation ensures that the organization adopts UK regulations on all matters related to cryptocurrency. Any company that deviates from the rules runs the risk of being subject to criminal and civil action by the FCA.
Today, more than thirty companies are registered with the FCA. A list that includes world-known companies such as Kraken, Etoro or Gemini. On the other hand, FTX is absent. The FCA states that “ This company is not licensed even if it is aimed at people in the UK “
A blow to the FTX platform
FTX, which today claims $10 billion in daily exchanges on its platform, can no longer work with the British. A blow that risks alienating many of the platform’s already loyal customers. Because if UK users use FTX despite FCA recommendations, they will not have access to the Financial Ombudsman Service. They will also not be protected by the Financial Services Compensation Scheme (FSCS). Measures that greatly reduce legal recourse in the event of loss of money.
So the best decision for FTX is to comply with FCA rules. It will also initiate negotiations and legal action to be regulated in the UK. The sooner this step is taken, the easier it will be for the FCA to decide on the future of exchange platforms on British soil.
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My name is Ariella and I am 31 years old. I have been working in web writing for 7 years now. I just discovered trading and cryptocurrencies a few years ago. But it’s a universe that interests me a lot. And the topics covered within the platform allowed me to learn more. Singer in my spare time, I cultivate a great passion for music and reading (and animals!