UK’s top financial regulator – the Financial Conduct Authority (FCA) – reportedly said that the cryptocurrency platform FTX does not have the necessary operational license to provide cryptocurrency products or services in the country.

FTX has been on a roll in the past several months despite the market decline. Earlier this year, it established its regional headquarters in Dubai. Months later, it launched an exchange in Japan to service cryptocurrency investors in the country

Bloomberg reported that the UK financial watchdog has warned local consumers that the cryptocurrency exchange led by Sam Bankman-Fried – FTX – is not authorized to operate in the nation as it has not been given the required operational licenses.

The regulator further claimed that the platform is targeting people in the UK and that it is unlikely that investors will get their money back if things go wrong. The FCA added that the country’s ombudsman will also be unable to help FTX users in case of a financial loss.

Back in April, the agency required all cryptocurrency firms that provide products and services in the UK to meet certain anti-money laundering regulations. Popular cryptocurrency exchanges like Kraken and CryptoCom completed that step and received the necessary operational licenses from the watchdog.

Last year, the FCA claimed that Binance’s UK-based subsidiary- Binance Markets Limited – is not permitted to undertake any regulated cryptocurrency activity in the United Kingdom. As such, the entity was ordered to stop providing derivative products to UK residents.

In the next couple of months, Binance hired more personnel and rolled out mandatory Know-Your-Customer (KYC) requirements in order to meet the requirements to obtain the regulatory approval. Both sides settled the issues at the end of August 2021 and the FCA announced that the firm had complied with all requirements.

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