The Financial Conduct Authority (FCA), the regulatory authority overseeing financial markets in the United Kingdom, has taken action against numerous cryptocurrency exchanges, including prominent names like Huobi/HTX and KuCoin. On October 8th, the FCA expanded its warning list of non-authorized firms that consumers are advised to steer clear of, adding 143 new entities.
The warning list, which issues a clear directive for consumers to “avoid dealing with this firm,” serves as a cautionary measure by the FCA. In the UK, companies wishing to engage in crypto asset activities must be registered with the FCA or have obtained temporary operating status.
Failure to comply with these regulations could result in legal consequences, as the FCA has made it clear that it will take strong action against those illegally promoting services to UK consumers. This includes actions such as listing firms on the warning list and requesting the removal of websites, social media accounts, apps, and other promotional materials that violate regulations.
According to data from August, the FCA had received 291 registration applications since 2020 but had approved only 38 of them, constituting approximately 13% of applicants. Currently, the FCA’s list of registered crypto asset providers includes 42 entities, including well-known names like Bitstamp, Revolut, and Gemini.
In light of the FCA’s stringent requirements and regulatory framework, some cryptocurrency-related companies have faced challenges in the UK market. PayPal, for instance, temporarily suspended crypto transactions for its UK customers as it worked to ensure compliance with the FCA’s regulations. Similarly, Dubai-based cryptocurrency exchange Bybit suspended all its services in the United Kingdom in late September, citing “regulatory changes” as the reason for its decision.
