The FCA (Financial Conduct Authority), the leading regulatory body in the UK, on September 19, stated that the cryptocurrency platform FTX lacks the legal authorization to offer goods or services in the nation.
Despite the market dips, over the past several months the trading environment has been flourishing. In order to serve regional cryptocurrency traders and investors, it opened an exchange in Japan a few months after establishing its regional headquarters in Dubai.
According to an online media report, the UK authority informed local customers that Sam Bankman-cryptocurrency Fried’s exchange, FTX, is not permitted to operate in the country.
The regulator continued and asserted that the platform “is targeting individuals in the UK” and that investors are “unlikely to get their funds back if things go wrong.” The FCA stated that the nation’s watchdog cannot support individuals in the event of a financial loss.
Mandatory criteria to get licence from UK regulatory body
The regulatory authority mandated in April of this year that all digital currency companies offering services in the UK adhere to specific anti-money laundering criteria. The watchdog gave the necessary approval after popular exchanges like Kraken and CryptoCom fulfilled that process.
The FCA asserted a year ago that a UK branch of Binance i.e., Binance Markets Limited, was not permitted to carry out any regulated activity in the United Kingdom. The firm was therefore told to stop offering derivative services.
Binance recruited more staff and implemented mandatory KYC (Know-Your-Customer) guidelines for the following couple of months in order to secure regulatory permission. At the end of August 2021, the problem gets resolved, when the watchdog made the following statement:
“On June 25, 2021, Binance Markets Limited was subjected to FCA requirements. The company complied with all aspects of requirements.”
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