Bahamian cryptocurrency exchange FTX is not authorized to provide services to customers in the UK.
The country’s financial regulator the Financial Conduct Authority (FCA) said “we believe this firm may be providing financial services or products in the UK without our authorization”, in an official note on Friday 16 September.
Over the last few months FTX owned by entrepreneur Sam Bankman-Fried has come under the watchful eye of regulators.
During the market downturn, the crypto trading platform tried to bail out large firms that were struggling during the crypto crash.
To offer, promote or sell financial services or products in the UK, companies and individuals must be authorized by the financial regulator.
The UK financial watchdog has said that FTX was alleged to target UK customers without holding the required authorization and has now marked FTX as an unauthorized firm.
Any customers who engage with unauthorized firms are not protected by the Financial Services Compensation Scheme (FSCS), which poses a high risk of never receiving funds if something should go wrong.
Alongside little to no protection, customers also have no access to the Financial Ombudsman Service that settles disputes between companies and individuals, thus would have no support in a dispute between companies and individuals.
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