FTX UK ban expected, FCA iterates unlicensed status

The Financial Conduct Authority (FCA), responsible for crypto regulation in the UK, has reiterated the unauthorised status of FTX. Recently,FCA issued a warning for the consumers in the country that the exchange is working without approval. The regulating body has added the company to the list of unregistered digital asset firms. Following this, the FTX UK ban is expected.

The crypto exchange had planned to seek expansion into the UK and European markets in March 2022. The Sam Bankman-Fried exchange pursued approval from the British regulators. However, FCA’s strict enforcement of anti-money laundering laws has not allowed the business to get the registration.

FCA’s warning for consumers

The warning issued by the crypto market watchdog says, “We believe this firm may be providing financial services or products in the UK without our authorisation.” It cautioned the investors that they would not get their money back in case of losses.

It also mentioned that the consumers of this service would not be eligible for Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS). Moreover, regulators advised that consumers must deal with registered firms to protect themselves financially.

Enforcement of crypto regulations in the UK

This is not the first instance of such a warning from the British regulating body. Earlier, they issued warnings for several virtual asset service providers. Among them, a famous firm is Binance. Last year, in June, regulators deemed the activities of Binance to be unauthorised, which led the firm to relocate its headquarters to Ireland.

Meanwhile, FCA received around 248 applications for authorisation. But only 37 are registered cryptocurrency and digital asset companies in the country. Recently, Crypto.com has been one firm to get approval. Other known names to get the approval are eToro UK, Rubicon Digital Limited, DRW Global Markets LTD, Uphold Europe Limited, etc.

Will it lead to an FTX UK ban?

Britain’s policies have been strict for the enforcement of regulations. The list of unapproved firms indicates that. FTX has become the latest company on the list. Regardless of the strict enforcement, the regulators have not yet pushed for a complete ban on any firm. Therefore, an FTX UK ban also looks unlikely. Nonetheless, this step may affect the company’s operations in the region.