A British regulator – FTX is an unauthorized financial services provider

A British regulator – FTX is an unauthorized financial services provider

Crypto news Platforms Technology
September 19, 2022 by Super System
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FTX FCA UK

A British regulator has listed FTX Crypto Exchange Ltd as an “unauthorized” crypto-asset business

The Financial Conduct Authority (FCA), the chief financial regulator in the United Kingdom, issued a warning to Bahama-based crypto exchange FTX, claiming it operates without authorization. The company joined a growing list of unregistered cryptocurrency-related businesses that continue to outweigh those signed up with the FCA.

The FCA is an independent UK Government body that was founded in 2013 with a responsibility for regulating financial services and markets, over 8,000 registered firms and about 22,000 authorised individuals.

However, it is important to understand that the fact that an entity is not regulated under the FCA regime doesn’t mean that it shouldn’t be regulated. Nor does failure to have a regulatory authorization prevent the FCA from taking action against the firm. It may well be that firms operating in this space without our supervisory oversight are not subject to other requirements such as customer due diligence (CDD) or reporting suspicious activity.

“Successful registration depends upon a firm meeting the minimum standards we expect to prevent money laundering and terrorist financing, and we have seen too many financial crime red flags missed by the crypto asset businesses seeking registration.”

FTX FCA UK

After being contacted by the regulator, FTX has tried to get into the good graces of the Financial Conduct Authority but did not succeed. According to sources familiar with the ongoing investigations, the company has been issued an official cease and desist letter due to its failure in addressing regulatory concerns regarding customer protection, anti-money laundering and suspicious activity reporting.

On Sept. 14, the Financial Conduct Authority (FCA) in the United Kingdom issued a statement disclosing that it has imposed an immediate prohibition to FTX International Limited, until it obtains a license from the FCA.