Britain’s financial watchdog has warned Brits against trading with Sam Bankman-Fried’s FTX cryptocurrency exchange as it ramps up efforts to regulate offshore companies with digital assets.
The Financial Conduct Authority said on Friday that FTX promoted its platform and services in the UK without consent. Every company and every person who offers, promotes, or sells financial services or products in the UK must be approved or registered with the Authority. This company is not endorsed by the Authority and is for people in the UK, If something goes wrong, they won’t get their money back.
This isn’t the first time the FCA has clashed with a major cryptocurrency exchange.
In August last year, they claimed that the world’s largest exchange, Binance, was “incapable” of effective scrutiny, making it a significant risk for UK consumers.
The FCA and other financial regulators are struggling to regulate major cryptocurrency exchanges, most of which are located offshore. FTX is registered in the Bahamas but received approval to invest in Cyprus this month, allowing it to expand in the the European Union.
