The Financial Conduct Authority (FCA) released a new setup of rules for the crypto companies to force the crypto company’s services under a safer zone so that citizens can trade crypto assets with full confidence.
The Financial Conduct Authority (FCA) is the UK’s top financial regulatory body. This financial regulator also regulates the crypto sector under existing traditional as well as some new rules dedicated to the crypto sector. This regulatory body has several times been accused by the crypto companies of not giving regulatory approval to start crypto services under the jurisdiction of the UK but every time the FCA official said that crypto companies failed to comply with rules & that was not the agency’s fault.
Recently the FCA agency published a new set of rules for the crypto companies providing crypto services in the UK’s jurisdiction. New rules are not going to bring a direct impact on the crypto traders as well as existing crypto services by UK-based crypto companies but surely it created some hurdles for the companies’ leaders to introduce new changes in their services from the backend to comply with the FCA’s rules.
According to a report by the crypto news website Decrypt, Coinbase exchange sent an email to the UK’s customers in a weekly report and confirmed that the exchange introduced some new prominent risk disclaimers within the Coinbase experience and it will bring no impact to the existing crypto services but surely it will help to bring more clarity for the crypto investors to understand the risks associated with the exchange’s product & services.
Following the FCA’s new regulatory development for the crypto companies, the top-ranked crypto exchange Binance published a dedicated blog post & confirmed that the latest changes will make some services disappear but only for UK-based customers.
Now all Binance’s UK-based customers will be able to access the platform’s services via a subdomain (automatic redirect to new sub-domain) and the exchange re-launched its dedicated Binance crypto app for UK-based customers which was temporarily suspended ahead of new rules.
On the other hand, Bybit crypto exchange suspended its crypto services entirely and is doing its best to bring its crypto services into full compliance as soon as possible.
Global Digital wallet service provider PayPal also suspended its crypto purchase services for UK-based customers. It will also take some more time to update the policy & bring some changes in the services, to comply with FCA’s new rules.
On 8 Oct 2023, the FCA agency published a warning against 146 Crypto companies running crypto exchanges in the UK’s jurisdiction without regulatory approval. This is showing that FCA is failing to take action against unregistered & unlicensed crypto exchanges but here it is citizen’s duty to avoid the use of unlicensed crypto exchanges.