- The FCA issued warnings to 146 companies for failing to comply with new cryptocurrency regulations in the UK, urging customers not to use them.
- Despite warnings since February, non-compliant firms now face legal action for continuing to operate.
- The FCA maintains a Warning List of non-compliant companies to help consumers assess the legality of crypto promotions before investing, with popular exchanges like KuCoin and Huobi listed.
The UK’s financial watchdog, the Financial Conduct Authority (FCA), has revealed that it has issued warnings to 146 companies following its new regulations which came into force yesterday. These companies have failed to comply with the new “regime” and as such customers are being warned not to use them. The new regulations concern how crypto products are marketed and the type that platforms serving UK customers can offer. Popular exchanges such as Binance, Coinbase, and Bitstamp have already complied, while others such as ByBit have chosen to leave the UK instead.
Firms Have Been Warned Since February
The FCA has been warning since February that the new rules would be coming in October, and still 146 companies have not complied, resulting in these entities receiving warning letters that they are breaking the FCA’s laws by continuing to operate.
Not all non-compliant firms have been added to the list, with the FCA targeting the ones it is most concerned about first and foremost:
We take a risk-based approach, so not all firms of potential concern will be added straightaway. This list will be continually updated as we identify firms which may be illegally communicating cryptoasset promotions and are failing to engage with us constructively.
Binance Makes the Cut
The FCA has put together a register of the non-compliant companies and advises that consumers “check the Warning List before making any investment in crypto” as it will “help consumers understand where firms’ promotions may be breaking the law and to consider the promotion with the full information available.”
On the Warning List are popular exchanges such as KuCoin and Huobi, but notably not on the list is Binance, which, along with other players such as BitStamp, Coinbase, and Kraken has achieved the relevant clearance to continue operating.
