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By Geoffrey Smith
Investing.com – The UK’s Financial Conduct Authority has launched an opening salvo against crypto exchange FTX, publicly warning consumers that it is not licensed to do business in the country.
“We believe this firm may be offering financial services or products in the UK without our authorisation,” the FCA said in a brief statement on its website, adding: “You will not have access to, or be protected by, the Financial Ombudsman Service.” Financial Services Compensation Scheme (FSCS) so you probably won’t get your money back if something goes wrong.”
The warning echoes the FCA’s crackdown on FTX’s biggest rival, Binance, over the past year and is the latest twist in a long-running game of cat-and-mouse between regulators and crypto exchanges, which have traditionally tried to get out of offshore to enter developed markets from jurisdictions with less developed oversight.
Binance was also criticized by the FCA last year and eventually pressured to say it would reapply for UK regulation
FTX currently operates in the European Economic Area through K-DNA Financial Services Ltd, which is licensed to operate by the Cyprus Securities and Exchange Commission. It also offers trading in tokenized shares in the EEA through subsidiaries with licenses in Switzerland and Germany. However, the UK’s exit from the European Union and EEA at the end of 2020 means neither of these give it the right to trade in the UK.
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