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Usha Yadav
Sep 20, 2022
by Usha Yadav

U.K. Financial Watchdog Issues Warning Against Crypto Exchange FTX

FTX

Table of contents

  1. Warning Against Crypto Exchange FTX
  2. FCA Says Customers Using Unlicensed Business
The U.K.'s Financial Conduct Authority (FCA) is cautioning consumers about Sam Bankman-cryptocurrency Fried's exchange FTX because it is not permitted by the authority to provide financial services or goods in the nation. The FCA claimed that "FTX is not authorized by us and is targeting consumers in the U.K." and that "virtually all firms and person offering, marketing or selling financial services or products in the U.K. have to be authorized or registered by us."

Since August 2020, the FCA has been developing a list of businesses that deal in digital assets and have complied with the Money Laundering, Terrorist Financing, and Transfer of Funds Regulations of 2017. Sam Bankman-Friend, the CEO of FTX, also tweeted that a scammer is impersonating FTX in the U.K.

Warning Against Crypto Exchange FTX

Bankman-multibillion-dollar Fried's cryptocurrency trading platform has gained notoriety recently, partly because of its role in trying to save significant crypto companies that failed during the market collapse earlier this year. FTX is now listed in the FCA's directory for financial services as an "unauthorized firm." According to the warning, organizations and people "offering, promoting or selling financial services or products" in the U.K. must be registered with and authorized by the FCA. It also stated that FTX attempted to attract British clients without the license.

FCA Says Customers Using Unlicensed Business

According to the FCA, customers using unlicensed businesses cannot use the Financial Ombudsman Service, which resolves issues between companies and consumers. Customers are not covered by the Financial Services Compensation Scheme (FSCS), which means that if something goes wrong, they are "unlikely" to be able to get their money back.

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Financial Conduct Authority FTX Sam Bankman
U.K. Financial Watchdog Issues Warning Against Crypto Exchange FTX
Usha Yadav
Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

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