The FCA Adds Crypto Exchanges to Warning List
The Financial Conduct Authority (FCA) of the United Kingdom has updated its warning list of non-authorized firms that customers should avoid, adding 143 new entities, including major crypto exchanges like HTX and KuCoin. The warning list simply states that customers should avoid dealing with these firms, without providing further details.
Regulatory Requirements for Crypto Asset Providers
In the UK, firms that wish to carry out crypto asset activities must either be registered with the FCA or have temporary status to operate. Failure to comply with these requirements can result in criminal charges. The FCA has been taking robust action against illegal promotions targeting UK consumers, including placing firms on the warning list and requesting takedowns of websites and social media accounts.
Few Approved Applications
Since 2020, the FCA has received 291 applications for registration from crypto asset providers. However, only 38 of them, approximately 13%, have been approved. Currently, the FCA’s list of registered crypto asset providers includes 42 entities such as Bitstamp, Revolut, and Gemini.
Impact on PayPal and Bybit
PayPal has temporarily halted crypto transactions for its UK customers as it works on complying with the FCA’s requirements. Similarly, cryptocurrency exchange Bybit suspended all its services in the UK in September due to regulatory changes.
Hot Take: The FCA Cracks Down on Unregistered Crypto Exchanges
The Financial Conduct Authority (FCA) in the UK is taking strict action against unregistered crypto exchanges by adding them to its warning list. With 143 new entities added, including major players like HTX and KuCoin, customers are advised to avoid dealing with these firms. The FCA has emphasized the importance of compliance, stating that firms must be registered or have temporary status to operate in the crypto industry. The low approval rate for registration applications highlights the FCA’s stringent approach. This crackdown has already affected PayPal and Bybit, both temporarily halting their services in the UK until they can meet the regulatory requirements.
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