The Financial Conduct Authority (FCA), the leading financial watchdog in the United Kingdom, has stated that the cryptocurrency platform FTX lacks the requisite authorization to offer products or services in the nation.
Despite the market dips, the trading environment has been strong recently. To serve regional cryptocurrency traders and investors, it opened an exchange in Japan a few months after establishing its regional headquarters in Dubai.
The FCA claimed that FTX “is targeting people in the UK” who are unlikely to get their money back in the event of a financial loss.
Bloomberg reported that the UK watchdog informed local customers that Sam Bankman-FTX Fried’s cryptocurrency exchange is not legally permitted to operate in the country.
The regulator went on to say that investors are “unlikely to get their money back if things go wrong” and that the platform “is targeting people in the UK.” The FCA stated that the nation’s ombudsman is unable to assist users in the event of a financial loss.
All cryptocurrency businesses that offer services in the UK were required to comply with specific anti-money laundering criteria by the agency in April of this year. After finishing that phase, well-known exchanges like Kraken and CryptoCom got the go-ahead from the watchdog.
The FCA asserted last year that Binance Markets Limited, a subsidiary of Binance with offices in the UK, is not authorized to engage in any regulated activity there. As a result, the organization was told to stop offering derivative items.
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