In a weekend blitz, the UK’s Financial Conduct Authority (FCA) took swift action by expanding its warning list to include a staggering 143 entities, with a primary focus on the cryptocurrency sector. The move comes as the new cryptocurrency regulations in the United Kingdom went into effect on October 8, 2023, demonstrating the FCA’s commitment to ensuring compliance within the rapidly evolving digital asset landscape.
Colin Wu, a prominent cryptocurrency journalist, took to X (formerly known as Twitter) to reveal the updated FCA list, featuring some well-known names in the cryptocurrency world.
The UK Financial Conduct Authority placed 143 entities on its warning list on October 8, including cryptocurrency exchanges Huobi/HTX and KuCoin. "Our Warning List shows the firms that we’re concerned are working without our permission. " https://t.co/FVeWWJ71Mo
— Wu Blockchain (@WuBlockchain) October 9, 2023
As per a recent report, these exchanges have come under intense scrutiny by the FCA for purportedly advertising financial services or products without the essential authorization, a grave transgression from the perspective of the British regulatory authority. The FCA’s cautionary message for both KuCoin and Huobi is straightforward, asserting:
This firm may be promoting financial services or products without our permission. You should avoid dealing with this firm.
It is noteworthy that, despite the global proliferation of cryptocurrency exchanges, the latest data from the FCA revealed that only 42 entities are presently sanctioned as crypto asset providers in the UK. Since the onset of 2020, a mere 13% of the 290 applications for such authorization have garnered approval from the regulator, underscoring the rigorous criteria established by the British Supervisory Commission.
The initiation of the UK’s updated financial promotions framework for digital assets on October 8 represented a pivotal moment. The recently implemented laws by the UK government are geared towards overseeing the promotion of crypto assets to the public, shielding UK residents from potentially hazardous investments and ensuring they are equipped with adequate knowledge before delving into the crypto realm.
These regulations apply to domestic companies and foreign entities marketing digital assets within the UK’s borders. The FCA had issued reminders about the impending deadline towards the end of September, highlighting the need for firms to align with the new regulations promptly.
Furthermore, the FCA disclosed data concerning financial promotions during the second quarter of 2023, covering April to June. The statistics revealed that the regulator’s actions led to 1,507 promotions being modified or withdrawn by companies under its oversight. Additionally, the FCA issued 400 warnings to firms and individuals operating without the requisite authorization in the UK, with 11% of these alerts about cloned companies.
