The Financial Conduct Authority (FCA) as the chief financial regulator in the United Kingdom (UK), issued a warning to the FTX crypto exchange platform based in the Bahamas for operating without authorization.
It is explained that the firm will not only provide financial services or products in the UK without authorisation, but the customer will not get their money back or get the protection of the Financial Services Compensation Scheme.
By the end of August, 37 firms including Crypto.com were registered with the FCA, while other firms that achieved Money Laundering Regulation approval were eToro UK, DRW Global Markets LTD, Zodia Markets (UK) Limited, Uphold Europe Limited, Rubicon Digital UK Limited and Wintermute Trading LTD.
In context, the rules allow the FCA to supervise businesses operating in other countries as well as enforce Anti-Money Laundering and Anti-Terrorist Financing regulations.
Accordingly, a firm seeking registration approval must meet minimum standards and be free of financial crimes.
For example, ePayments, the largest provider of electronic payments in the UK, closed its business operations after being accused of financial crime control weaknesses by the FCA.
In the meantime, the Federal Deposit Insurance Corporation (FDIC) once issued a cease-and-desist letter against FTX for misleading many parties about certain cryptocurrencies insured by the FDIC.
