The Financial Conduct Authority (FCA) of the United Kingdom has taken a decisive step in safeguarding the interests of cryptocurrency investors by adding 143 new cryptocurrency exchanges to its “non-authorized” warning list. Notable platforms like HTX (Huobi) and KuCoin were among those flagged, as the FCA continues its efforts to regulate the burgeoning crypto sector.
The FCA’s warning list serves as a stark advisory to potential investors, cautioning them to avoid engaging with these unregistered entities. In the UK, cryptocurrency exchanges are required to either obtain registration with the FCA or provisional permission to operate. Failure to comply with these regulations could lead to severe consequences, including enforcement actions.
Jayson Probin, the FCA’s representative for crypto financial promotions, emphasized the regulatory agency’s commitment to protecting consumers. He stated, “We are prepared to take resolute measures against individuals who illicitly target UK consumers with crypto promotions.”
As of August, the FCA had received 291 registration applications since 2020, but only 38 were approved, representing a success rate of just 13%. Currently, the FCA’s list of authorized crypto asset providers includes 42 entities, including well-known names like Bitstamp, Revolut, and Gemini.
This move comes in the wake of PayPal’s suspension of cryptocurrency transactions for its UK customers to align with FCA compliance requirements and Bybit’s cessation of operations in the UK due to “regulatory changes.” The FCA’s continued vigilance underscores its commitment to fostering a safe and regulated crypto environment in the UK.
