As part of a warning to consumers, the UK’s Financial Conduct Authority (FCA) has published a statement stating that Sam Bankman-Fried’s crypto exchange FTX is not authorized by the authority to offer any financial products or services in the country.
There has been a similar warning from the FCA in the past concerning Binance, another major global crypto exchange, and its operations in the UK. In the following days and weeks, dozens of regulators from around the world have released similar statements in regards to Binance. Since August 2020, the FCA has been compiling a list of digital asset companies that have registered and adhered to the Money Laundering, Terrorist Financing, and Transfer of Funds Regulations of 2017 as required by this regulatory framework.
All firms and individuals offering, promoting or selling financial services or products in the UK have to be authorized or registered by FCA and FTX is not authorized by FCA and is targeting people in the UK.FCA stated in a statement
The FCA has posted a blog post on the details of its registration process which states that firms that have not ceased trading are at risk of being subject to the FCA’s criminal and civil enforcement powers. The FTX spokesperson said the firm was aware of the notice, but added that the FCA had listed the exchange’s phone number incorrectly.
Given the risks to consumers from unregistered or scam firms it’s important we issue warnings as quickly as possible and will issue updates if further information comes to light.FCA spokesperson in response to FTX’s announcement
You will not have access to the Financial Ombudsman Service or be protected by the Financial Services Compensation Scheme (FSCS), so you are unlikely to get your money back if things go wrong.FCA warned consumers about unregulated businesses