British regulator warns investors away from FTX
FCA issued a warning regarding the operation of the cryptocurrency exchange FTX.
According to the regulator, the Bahamas-registered platform is conducting unlicensed activity in the United Kingdom:
“This firm is not authorised by us and is aimed at residents of the United Kingdom,” the statement said.
The FCA said that UK customers of FTX will not be able to rely on protection of their rights, assistance from the financial ombudsman, or compensation for their funds if something goes wrong.
A spokesman for FTX told Bloomberg that the company is aware of the FCA notice. However, according to him, the phone number listed there had previously been flagged as fraudulent.
“We are studying this and are in touch with regulators. We believe that the fraudster is impersonating FTX. The phone numbers listed by the FCA do not belong to the exchange,” said the spokesperson.
Earlier in spring 2022, FTX began talks with UK regulators as part of its expansion into the European market.
Due to the ban on the sale of crypto derivatives in the country, which forms the exchange’s core offering, the platform pivoted to the spot market.
FTX established a European subsidiary in March. Its headquarters are in Switzerland, with regional representation in Cyprus, where the entity obtained a license from the financial regulator.
In June 2021 the FCA banned the exchange’s local operations. The Cayman Islands-registered company acknowledged that one of the causes of regulatory problems was its decentralized business model, and decided to abandon it.
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