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UK Regulator flags Huobi, KuCoin, and 140+ Crypto Exchanges as Non-authorised

Published

1 year ago

October 9, 2023

The Financial Conduct Authority (FCA) mandates most financial firms in the UK to be authorized or registered with them. However, certain firms continue to operate without proper authorization..

On October 8, the UK’s Financial market regulator, the FCA, issued a public warning about numerous unauthorized crypto exchanges operating in the UK.

The FCA’s warning list has expanded, now encompassing 143 additional entities, including prominent crypto exchanges like HTX and KuCoin. The warning provides limited information beyond a statement urging people not to engage with the companies on the list.

Similarly, in the United Kingdom, firms permitted to engage in crypto asset activities must either register with the FCA or obtain temporary authorization for their operations. Jayson Probin, who oversees crypto financial promotions at the FCA, issued a warning in July that non-compliance could lead to potential criminal charges:

“We will take robust action against persons illegally promoting to U.K. consumers. This may include, but is not limited to, placing firms on our warning list requesting takedowns of websites, social media accounts, apps, and all other promotions that are in breach, and enforcement action.”

According to data the FCA released, it has received a large number of applications (291) for registration since 2020 but has only approved a relatively small number of them (38), which is roughly 13%.

However, at the moment of this information’s release, the FCA had 42 entities listed as registered providers of crypto assets, including notable names like Bitstamp, Revolut, and Gemini.

Additionally, PayPal has temporarily suspended crypto transactions for its UK customers while it works on complying with the FCA’s regulatory requirements.

Dubai-based cryptocurrency exchange Bybit suspended all operations in the United Kingdom in late September, citing changes in the regulatory landscape.