UK’s Financial Conduct Authority Issues Warning About Problems With Sam Bankman-Fried Cryptocurrency Exchange (FTX) by DailyCoin

© Reuters. UK Financial Conduct Authority Alert for Sam Bankman-Fried Cryptocurrency Exchange (FTX)

The UK’s financial regulator, the Financial Conduct Authority (FCA), has issued a warning to consumers against dealing with FTX, the cryptocurrency exchange run by billionaire Sam Bankman-Fried. onion.

The warning letter states, “We believe this company may be providing financial services or products in the UK without our permission.” It also says, “This company is not authorized by us and is targeting people in the UK. You won’t have access to the Financial Ombudsman Service or are covered by the Financial Services Compensation Scheme (FSCS), so you won’t be able to get your money back if things don’t go as planned. desire. “

FTX did not immediately respond to a request for comment, the Financial Times said.

Furthermore, according to the FCA guidelines, a split has emerged between the EU and UK crypto regulation, and crypto wallet providers and crypto exchanges that must register signed with the FCA to oversee anti-money laundering if its digital asset operations are “conducted in a UK business manner.”

UK warning about crypto regulations

Recently, the UK has been preparing regulations mainly targeting stablecoins. The nature of the asset class and its rapid growth have alarmed monetary authorities, as it can be used to destabilize the financial system and evade sanctions. for Russia.

Subsequently, the UK Treasury Department’s Financial Sanctions Enforcement Office introduced new rules under which all crypto exchanges are required to report violations. sanctions are suspected for the UK authorities.

New UK rules have been put in place in response to Russia’s invasion of Ukraine and amid growing concerns that and other crypto assets are being used to evade regulations. restrictions imposed on the aggressor state in response to the invasion of Ukraine.

On Flipside

  • Recently, the UK’s FCA went head-to-head with another foreign digital asset company and popular crypto exchange – Binance – as the country ramped up its efforts to regulate cryptocurrencies. .
  • The FCA intervened against Binance last year, saying that its “high-risk and complex financial products” pose “significant risks to consumers” and that the largest cryptocurrency exchange world has “failed to respond” to some of its basic queries, making it impossible to monitor crowded groups.

Why should you care?

The UK’s FCA has reassured investors by clarifying that dealing with FCA-authorized or registered financial firms will give investors better protection if all goes well. unexpect.

Learn more about the UK’s approach to crypto regulation:

UK Announces New Regulatory Plan Amidst Crypto Firm Closure Concerns

Read about the latest developments around FTX:

FTX emerges as top bidder in Voyager’s digital bankruptcy auction

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