Crypto Exchange FTX Not Authorized in UK, Financial Watchdog Warns
Cryptocurrency exchange FTX is not authorized to provide services to customers in the U.K., according to the country's financial watchdog.
"We believe this firm may be providing financial services or products in the U.K. without our authorization," the Financial Conduct Authority said in an official notice on Friday.
The multi-billion dollar crypto trading platform owned by entrepreneur Sam Bankman-Fried has risen to prominence in the last few months, particularly because of its role in attempting to bail out large crypto firms that crashed during the market downturn earlier this year. FTX is now marked as an "unauthorized firm" in the FCA's registry for financial services.
Companies and individuals "offering, promoting or selling financial services or products" in the U.K. have to be authorized by and registered with the FCA, the notice said, adding that FTX was targeting U.K. customers without the required authorization.
Customers engaging with unauthorized firms cannot access the the Financial Ombudsman Service that settles disputes between companies and individuals, the FCA said. It also said that customers are not protected by the Financial Services Compensation Scheme (FSCS), meaning they are "unlikely" to recover their funds if things go wrong.
CoinDesk has reached out to FTX for comment.