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UK’s FCA Warns Consumers About Crypto Exchange FTX

UK’s FCA Warns Consumers About Crypto Exchange FTX

The Financial Conduct Authority (FCA), the primary UK financial watchdog, has been keeping a close eye on the cryptocurrency market and has recently made several key disclosures. Because of the exponential growth of the cryptocurrency business and the numerous exchanges’ efforts to attract customers from all over the world, monetary regulators are understandably concerned about crypto trading.

Recently, the Financial Conduct Authority (FCA), the United Kingdom’s financial watchdog, published a number of warnings about FTX

a cryptocurrency exchange owned by Sam Bankman Fried and situated in the Bahamas. The FCA has not authorized FTX to operate in the United Kingdom, yet FTX is doing so nonetheless. The Financial Conduct Authority (FCA) of the United Kingdom has made it very apparent that FTX must be on guard against continuing to offer unlicensed financial services and products.

In a recent statement, the UK’s financial watchdog noted that FTX, a cryptocurrency exchange situated in the Bahamas, is expanding its financial services around the world and is now even illegally supplying its financial services and goods in the UK.

In light of the fact that the Financial Conduct Authority (FCA) of the United Kingdom has pulled the plug and issued a stern warning to the country’s crypto customers, it is important to note that FTX will no longer be able to provide its financial services in the UK, and as such, customers will no longer be eligible for compensation programs or ombudsman services. Also, customers in the United Kingdom were warned not to count on any form of refund or clearance in the event of a problem.

Remember that Binance, along with hundreds of other cryptocurrency exchanges around the world, was given similar instructions earlier this year regarding its activities in the United Kingdom. In April of this year, the UK officially recognized cryptocurrencies as a form of legal tender and recommended that cryptocurrency businesses register with the Financial Conduct Authority (FCA) of the UK and follow by the state’s financial rules and regulations.

In contrast to Crypto.com, Kraken, and Gemini, which are all registered with the FCA and offer their services to customers in the United Kingdom, Binance, Coinbase, and FTX are not.

FTX.US president Brett Harrison recently announced that the cryptocurrency exchange is already live on the US-based crypto and stock trading platform in the first quarter of 2022, and is eager to expand into new markets.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.