– The billion-dollar exchange of “hero” Sam Bankman-Fried has been blacklisted by the UK Financial Conduct Authority (FCA).

flagged by the UK financial regulator. Image source: FCA

The UK's Financial Conduct Authority (FCA) has issued a warning, recommending consumers to boycott FTX because this exchange is operating illegally here.

“This company is providing a financial service or product in the UK without our permission”, FCA official announcement on September 16.

In the statement, the FCA emphasized that "most companies and individuals that provide, promote or sell financial services and products in the UK must be authorized or registered by us". Customers associated with unauthorized companies will not be entitled to FCA dispute resolution nor protection by the Financial Services Compensation Scheme (FSCS), which means that assets cannot be claimed if an incident occurs. try. The Financial Conduct Authority also warned that illegal firms that do not stop offering transactions risk being subject to civil to criminal penalties by the FCA.

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Regulatory framework set up in January 2020 allows the FCA to monitor businesses operating in space, enforce AML regulations, and finance counterterrorism. As of the end of August, there were 37 crypto companies registered with FCA, for example Gemini, , Galaxy Digital and .com is the newest candidate on this list.

But it remains unclear whether the FTX exchange will face any immediate consequences or negotiate further with the regulator. The exchange representative immediately confirmed with Bloomberg that some scammer is impersonating the company and phone numbers blocked by FCA not part of the FTX.

But this is not the first time FTX has caught the attention of regulators. On August 19, the Federal Deposit Insurance Corporation (FDIC) issued a directive directing FTX US to cease operations and cancel false claims that “mislead” the investing public about the products. insured by the FDIC.

FCA has a reputation for being strict with digital asset companies over the years. The agency once issued a similar warning to the exchange by the end of June 2021. Two months later confirmed again fully legally compliant, but still unable to conduct regulated business in the UK.