The FCA Lists Huobi (HTX), KuCoin, And More As Non-Authorized
The UK’s Financial Conduct Authority (FCA) has updated its warning list of non-authorized firms operating in the country. The regulator added 143 new entities to the list, including well-known crypto exchanges like KuCoin and Huobi-owned HTX. The FCA strongly advises against dealing with these firms.
However, Huobi’s spokesperson clarified that the exchange does not operate or market its services in the UK. Huobi holds operational licenses in various regions but does not specify the UK as a prohibited region.
KuCoin’s CEO, Johnny Lyu, also stated that the exchange does not operate in the UK. He mentioned their willingness to adjust their products and services to comply with relevant laws and regulations in each country.
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The FCA Extends Financial Regulations, Mandating All Entities To Comply
The FCA now requires all financial entities operating in the UK to register with them or obtain a temporary grant. Additionally, crypto firms must display clear risk warnings to UK-based customers and comply with higher technical standards, including a 24-hour cooling-off period for new clients.
According to FCA data, only 42 crypto asset providers are fully registered with them. In contrast, they have received 291 registration applications since 2020 but have only approved 38.
The FCA has warned that defaulters could face criminal charges. They are prepared to take robust action against those illegally promoting to UK consumers.
Hot Take: Stricter Regulation Aims to Protect Consumers
The FCA’s updated warning list and extended financial regulations demonstrate their commitment to protecting consumers in the crypto sector. By cracking down on non-authorized firms and mandating compliance, the FCA aims to ensure that individuals are not exposed to potential risks and scams.
While some exchanges like Huobi and KuCoin deny operating in the UK, the FCA’s measures reflect their proactive approach to regulation. It is crucial for crypto businesses to understand and comply with the rules set by regulatory authorities to maintain trust and legitimacy within the industry.
