Jeffrey Smith
Investing.com – The UK’s Financial Conduct Authority (FCA) has issued a consumer warning against the FTX crypto exchange, saying the exchange is not licensed to do business in the country.
“We believe this company may be providing financial services or products in the UK without our permission,” it said in a brief statement on its website. “You won’t be able to access the Financial Ombudsman service or be protected by the Financial Services Compensation Scheme (FSCS), so you’re not likely to get a refund if things go wrong,” he added.
The warning echoes last year’s move by the FCA against FTX’s biggest rival Binance, the latest in a long-running cat-and-mouse game between regulators and crypto exchanges trying to break into developed markets from less traditional offshore jurisdictions. .
Binance also came under fire from the FCA last year and was pressured to say it would eventually seek supervision in the UK.
FTX currently operates in the European Economic Area (EEA) through K-DNA Financial Services Ltd, which holds an operating license from the Cyprus Securities and Exchange Commission. It also offers token stock trading in the European Economic Area through its subsidiaries that have licenses in Switzerland and Germany. However, the UK’s exit from the European Union and the European Economic Area at the end of 2020 means that neither gives the right to trade in the UK.
Emily Brontë is a journalist and feature writer specialising in culture, entertainment, literature, and current affairs. She is dedicated to producing clear, accurate reporting that helps readers stay informed about developments in the UK and around the world.
