FTX is not authorized and targeting people in the UK, Says FCA

The Financial Conduct Authority (FCA) warned citizens and suggested to remain away from the FTX crypto exchange.

FTX is a popular crypto exchange, which is known for its promotional strategies to drag huge numbers of users on the platform. Due to quality crypto trading services & low withdrawal fees for new users, the exchange currently stands at 2nd rank in terms of 24 hours global crypto trade volume of its platform.

Just a few days ago, The UK’s financial regulatory body FCA issued a warning against FTX crypto exchange because the exchange is not registered in the UK to offer crypto services but still targeting UK-based users. 

The Regulatory Agency clearly said that all the crypto companies which are providing their services directly or indirectly in the UK are authorized & licensed and also they are expecting that none of the crypto firms is providing services without any regulatory approval.

For FTX, FCA noted that the exchange is not authorized but still targeting users of the UK and the agency also clearly said that people will not get their money back if anything will happen wrong with the FTX exchange because the exchange is not registered with Financial Services Compensation Scheme (FSCS).

“You will not have access to the Financial Ombudsman Service or be protected by the Financial Services Compensation Scheme (FSCS), so you are unlikely to get your money back if things go wrong.”

It is worth noting that the majority of the crypto companies are facing a huge struggle to get regulatory approval in the UK because FCA is not giving ease for the crypto companies to easily enter the crypto market of the UK. 

This year, FCA announced & warned all the Bitcoin or crypto ATM operators to suspend their services from the UK because no one company was authorized to operate such kinds of services.

Read also: A new proposed law will prohibit unlicensed stablecoin operations in Australia