Consumers are warned by the UK authority about FTX in cryptocurrencies

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Last Updated on September 20, 2022 by Bitfinsider

Consumers should be aware that Sam Bankman-Fried’s cryptocurrency exchange, FTX, is not permitted by the UK’s Financial Conduct Authority (FCA) to provide financial services or products in the nation.

According to the regulator, Bahamas-based FTX “is targeting people in the UK,” and as investors will not be covered by the nation’s ombudsman service and compensation program, they are “unlikely to get your money back if things go wrong.”

Similar advice from the FCA was previously given on Binance, another significant international cryptocurrency exchange, and its operations in the UK. Later, similar statements regarding Binance were released by dozens of regulators across the globe.

FTX is aware of the notice, according to a spokeswoman, however the FCA listed the exchange’s phone number incorrectly. The representative responded via email, saying, “We believe that a scammer is impersonating FTX; we’re looking into it and communicating with regulators.” “The phone numbers supplied by the FCA are identified as a crypto scam and are not from FTX.”

A spokeswoman for the FCA responded to FTX’s statement by saying: “Given the risks to consumers from unregistered or scam firms, it’s important we issue warnings as quickly as possible and will issue updates if further information comes to light.”

In April of this year, the UK made its crypto asset registration permanent. Under this program, businesses engaging in cryptocurrency business in the nation are required to adhere to the FCA’s anti-money laundering rules. FTX, Coinbase, and Binance are not on the register, whereas others like Gemini, Kraken, and are. Consumers in the UK can still access all of these.

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