Huobi, KuCoin, over 140 crypto exchanges ‘unauthorised’ — UK regulator
The UK's financial market regulator, the Financial Conduct Authority (FCA), had a busy Sunday on October 8, as it added several crypto exchanges to its warning list of unsanctioned firms that customers should “avoid”.
A total of 143 new entities were added to the alert list, including major exchanges such as Huobi-owned HTX and KuCoin. The warning list doesn't show much other than the statement, “You should avoid dealing with this company.”
Related: CoinShares-backed Komainu Confirms Crypto Guardian Registration in UK
However, in the UK, firms authorized to “carry out crypto asset activities” must register with the FCA or be granted a temporary license to operate. In July, Jayson Probin, head of crypto financial promotions at the FCA, pointed out that non-compliance could lead to criminal charges:
“We will take strong action against those who illegally advertise to UK users. This may include, but is not limited to, putting websites, social media accounts, applications and other organizations on our warning list for infringing promotions and requesting enforcement action.”
In August, the FCA revealed that as of 2020, it had received 291 registration applications and approved only 38, which is roughly 13 percent. At the time of publication, the FCA's list of registered crypto asset providers includes 42 entities such as Bitstamp, Revolut and Gemini.
PayPal recently suspended crypto transactions for its UK customers until it figures out how to comply with FCA requirements. Dubai-headquartered cryptocurrency exchange ByBit suspended all of its services in the UK in late September due to “regulatory changes”.
