On Sunday, October 8, the UK’s Financial Conduct Authority (FCA) released an updated warning list of firms noted as non-authorized operators in the country. The latest move from the FCA is part of the UK’s regulatory measures to curb unregulated operations in its crypto sector. The FCA now frowns strictly on non-compliance with its financial rules within the country.
The FCA Lists Huobi (HTX), KuCoin, And More As Non-Authorized
The financial regulator added about 143 new entities to the latest warning list, including prominent crypto exchanges such as KuCoin and Huobi-owned HTX. Also, the regulator stated, “You should avoid dealing with this firm.”
But, according to Bloomberg, Huobi’s spokesperson mentioned that the exchange “does not operate or market its services or products in the UK.”
Huobi’s website indicates that the crypto exchange has operational licenses in Dubai, Lithuania, South America, Australia, Gibraltar, and the British Virgin Islands. However, it does not specify the United Kingdom as a prohibited region for its operations.
On its part, KuCoin’s chief executive officer, Johnny Lyu, reacted to the development in an emailed statement. He stated that the exchange also does not operate in the United Kingdom.
Further, the CEO mentioned KuCoin’s readiness to adjust its “products and services according to ensure compliance with relevant laws and regulations in each country to the extent possible.”
Also, KuCoin revealed that its operations are restricted in places like Singapore, the US, Thailand, the mainland of China, Hong Kong, Canada, Ontario, and Malaysia. But it didn’t mention the UK as part of its restricted countries.
The FCA Extends Financial Regulations, Mandating All Entities To Comply
In the latest update, the regulator mandated all financial entities operating in the UK to register with the FCA. Alternatively, the entity must have received a temporary grant from the regulator to operate.
Also, the regulator now demands that all crypto firms display clear risk warnings to their UK-based customers. Additionally, it expects crypto platforms to comply with higher technical standards set by the rules. This includes a 24-hour cooling-off period for new clients on their platforms.
However, according to the regulator’s data, only 42 crypto asset providers are fully registered with the FCA. These include firms like Gemini, Bitstamp Revolt, and others.
Meanwhile, the FCA revealed in August that it had received 291 applications for registration since 2020. However, it has only approved 38, representing about 13% of what it got.
Regarding the penalty for defaulters, the FCA’s head of crypto financial promotions, Jayson Probin, disclosed in July that they could face criminal charges. Probin stated:
We will take robust action against persons illegally promoting to UK consumers. This may include, but it 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.
Featured image from Pixabay and chart from TradingView.com