UK’s FCA adds over 140 ‘unauthorized’ crypto firms in latest warning

November 16, 2023
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UK’s FCA adds over 140 ‘unauthorized’ crypto firms in latest warning

The Financial Conduct Authority (FCA), the United Kingdom’s financial regulatory body, has targeted over 140 cryptocurrency exchanges, adding them to its warning list of non-authorized firms.

A total of 146 new platforms were added to the warning list, including major exchanges such as HTX and KuCoin. In the Oct. 9 notice, the regulator prompted businesses, including social media platforms, app stores, search engines, domain name registrars, and payment firms, to consider the issued alerts to protect UK consumers from illegal promotions. It announcement added:

“Consumers should check the Warning List before making any investment in crypto. The list will help consumers understand where firms’ promotions may be breaking the law and to consider the promotion with the full information available.”

The agency wrote that it takes a “risk-based approach,” explaining that not all firms of potential concern will be added to the warning list immediately.

“This list will be continually updated as we identify firms which may be illegally communicating cryptoasset promotions and are failing to engage with us constructively,” the FCA added.

The latest warning is the first since the new crypto promotion regime came into effect on Oct. 8. Under that law, crypto firms that want to promote crypto-related products and services in the U.K. must be authorized or registered by the FCA or have their marketing approved by an authorized firm.

Under FCA rules, promotions must be clear, fair, and not misleading. They should be labeled with prominent risk warnings and must not inappropriately incentivize people to invest. These changes align crypto assets with other high-risk investments.

Other major platforms, such as cryptocurrency exchanges OKX and Binance, have announced intentions to comply with the FCA’s promotional rules. Binance, for instance, launched a new domain to offer its services to UK clients as part of a partnership with peer-to-peer lending platform Rebuildingsociety.com.

Under the deal, the Leeds-based company authorized by the FCA as an S21 approver would approve the exchange’s marketing materials.

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