The UK’s Financial Conduct Authority (FCA) has issue a warning to consumers not to conduct any business with the FTX crypto exchange.
In a statement first issued on September 16, the FCA states that “This firm is not authorized by us and is targeting people in the UK.”
The regulator issues warnings to consumers about unauthorized firms soliciting for business in the UK from time to time – the FCA issued one such warning against Binance earlier this year.
FTX is a fast-growing exchange founded by Sam Bankman-Fried. However, the FCA has said it is not authorized to operate in the UK: “We believe this firm may be providing financial services or products in the UK without our authorization.
“Find out why you should be wary of dealing with this unauthorized firm and how to protect yourself.”
Authorities stepping up clamp down on crypto
This latest move is yet another sign that the financial authorities around the world are getting tougher on crypto.
Crypto firms operating in the UK are required to register with the FCA under anti-money laundering rules.
FTX recently received a license from the Cypriot financial authorities that allow it to operate in the EU.
In its warning on FTX, the FCA makes it clear that any individual who suffers losses due to business failure at FTX would not be able to claim compensation from the Financial Ombudsman Service or the Financial Services Compensation Scheme.
FTX is registered in the Bahamas. It has grown rapidly since its foundation in 2019 to become one of the largest crypto exchanges, turning over a daily trading volume in excess of $10 billion.
FTX created a separate entity – FTX.US – to cater to the US market in a way that is compliant with US authorities.
That move mimicked the actions of rival Binance, which also has a separate US business.