FCA Adds 145 Crypto Companies to Warning List
The Financial Conduct Authority (FCA) in the United Kingdom has expanded its warning list to include 145 digital asset companies, including major exchanges Huobi-owned HTX and KuCoin. This move is part of the FCA’s efforts to protect consumers and regulate the growing crypto industry. The FCA now requires all cryptoasset service providers, regardless of their location, to adhere to its regulations.
Cracking Down on Crypto
The FCA has taken a decisive step in safeguarding consumers and regulating the crypto industry. In the past week alone, it has issued 26 new warnings to unauthorised and clone firms. The FCA emphasizes that promoting financial services or products without its permission is forbidden and urges individuals to avoid dealing with these firms.
Huobi and KuCoin Respond
Huobi and KuCoin have responded to their inclusion on the FCA’s warning list. Huobi states that it does not operate or market its services in the UK, but the FCA’s jurisdiction extends to any company dealing with UK consumers. KuCoin’s CEO, Johnny Lyu, expresses the company’s commitment to complying with laws and regulations in each country they operate in, including the UK.
The Value of the Warning List
The FCA’s warning list serves as a valuable resource for consumers, helping them identify companies that require caution. Engaging with unapproved firms can result in losing access to critical services such as the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS), which can be detrimental if complications arise.
Hot Take: FCA Increases Oversight on Crypto Companies
The FCA’s decision to add 145 digital asset companies to its warning list demonstrates its commitment to protecting consumers and regulating the crypto industry. By expanding its regulations to include all cryptoasset service providers, regardless of their location, the FCA aims to crack down on unauthorized firms and ensure compliance with its rules. This move serves as a reminder to individuals to exercise caution when engaging with crypto companies and to only deal with authorized and regulated entities. The FCA’s warning list provides a valuable resource for consumers, helping them make informed decisions and avoid potential risks in the crypto space.
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