September 29, 2022

The UK’s prime monetary regulator has warned customers that the Bahamas-based cryptocurrency change FTX isn’t licensed to supply monetary companies or merchandise within the nation.

In a be aware final week, the Monetary Conduct Authority mentioned FTX is “concentrating on folks within the UK” for its merchandise, warning customers to cope with the corporate with warning. He added that if customers invested in FTX, they’d not have entry to protections such because the Monetary Ombudsman Service, which resolves complaints between customers and monetary companies companies, or the nation’s Monetary Companies Compensation Scheme, which pays customers. when a monetary agency could not pay claims.

An FTX spokesperson advised Bloomberg that the alert seems to have been prompted by a scammer impersonating a cryptocurrency change, noting that the cellphone numbers listed within the FCA alert are incorrect.

“We’re wanting into this and speaking to regulators; we imagine a scammer is impersonating FTX,” the spokesperson mentioned. “The cellphone numbers listed by the FCA don’t belong to FTX and are listed as a cryptocurrency rip-off.”

FTX didn’t instantly reply to Luckrequest for remark.

The FCA has been actively implementing laws on crypto trade gamers regardless of earlier statements from senior authorities officers, together with the nation’s former financial finance minister, in favor of the trade.

Final 12 months, the FCA revealed a be aware much like FTX warning customers in regards to the world’s hottest crypto change, Binance. Earlier this 12 months, the regulator additionally issued a be aware warning all crypto ATM firms within the UK that they’re doing so illegally. Cryptocurrency exchanges Binance and FTX are nonetheless accessible to UK customers.

The FCA’s warning to FTX got here after Securities and Trade Fee Chairman Gary Gensler took a harsher tone on cryptocurrencies. Cryptocurrency firms have known as for extra regulatory steerage and have accused the US company of implementing regulation as an alternative of making clear guidelines.

Gensler mentioned in a speech earlier than the Institute of Sensible Regulation earlier this month that current securities guidelines ought to apply to cryptocurrencies, regardless of trade advocates saying the principles are being misinterpreted.

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