UK Regulator Targets FTX, Citing Unlicensed Operations

  • The cryptocurrency exchange didn’t disclose its view on the regulatory move.
  • It acquired a Cyprus license early in 2022.

The UK’s fiscal market regulator, FCA (Financial Conduct Authority), has warned against the renowned cryptocurrency exchange, FTX, calling the trading site an unauthorized company.

Last week’s alarm by FCA saw the regulator stating that the platform offers financial products or services in the United Kingdom without authorization.

Nevertheless, FTX appears to have halted crypto derivative services for retail customers in the UK early last year. That came after the FCA banned the distribution and sale of crypto derivatives to retail investors.

The exchange posted about the move, stating that UK retail customers could no longer trade derivatives on the platform starting 6 January 2021.

It added that United Kingdom retail clients could continue to keep the assets and unwind positions later but could not execute new ones. Nevertheless, the rules didn’t apply to professional customers.

FCA and Renowned Cryptocurrency Exchanges

Billionaire Sam Bankman-Fried heads and founded FTX, one of the leading and growing cryptocurrency trading sites. Reports show the exchange’s volume skyrocketed by 1000% in 2021 to $1.02 billion.

Moreover, FTX expects revenues worth $1.1 billion in 2022, despite the current cryptocurrency winter, after closing Q1 with $270 million.

Meanwhile, the British watchdog warning emerged after FTX acquired authorization from Cyprus, allowing it to provide cryptocurrency derivatives in the European Economic region. Nevertheless, the exit by Britain from the European area kept the crypto exchange out of the nation.

FCA’s move against FTX isn’t the first alert it ensured against a leading crypto exchange. It attacked Binance last year, forcing the crypto exchange to comply with the country’s regulations.

Early in 2021, FTX’s European unit, which has headquarters in Switzerland, confirmed plans to tap into the United Kingdom following regulatory approval.

FCA’s move against FTX presented the recent twist in the ever-running game between crypto exchanges and regulators, with the former targeting developed markets with less supervision. However, regulators have always stated working to secure investor interest.

What are your thoughts about the legal battle between FCA and FTX? Feel free to leave a reply below.

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