The British
financial market regulator was not idle over the past weekend, adding 143 new
entities to its warning list, primarily from the cryptocurrency sector.
Notably, the updated Financial Conduct Authority (FCA) list includes well-known
brands such as the cryptocurrency exchanges KuCoin and Huobi. The move is deliberate, as new cryptocurrency regulations came into effect in the country on October 8th.
In the case
of both Huobi and KuCoin, two cryptocurrency exchanges originating from Asia,
the FCA warning message is the same: “This firm may be promoting financial
services or products without our permission. You should avoid dealing with this
firm.”
The FCA
emphasizes that in order to promote cryptocurrency services, or any other
services, in the United Kingdom, a special authorization issued by the British
supervisory commission is required. The inclusion of these two exchanges on the
warning list indicates that Huobi and KuCoin lack such authorization.
@kucoincom and @HuobiGlobal were included on the @TheFCA ‘s warning list this weekend, along with over 140 other entities. pic.twitter.com/vWNZuucnCy
— Damian Chmiel (@ChmielDk) October 9, 2023
There are
many cryptocurrency exchanges worldwide; however, according to current FCA
data, only 42 entities are registered as crypto asset providers in the UK.
Moreover, since the beginning of 2020, the regulator has approved only 13% of
over 290 applications for such authorization.
Implementation
of New Cryptocurrency Regulations
October 8
marked the day of the activation of the UK’s revised financial promotions
framework for digital assets. The UK government has put into effect new laws
aimed at regulating how crypto assets are promoted to the public, focusing on
shielding UK residents from risky investments without sufficient knowledge.
This updated framework will be applicable to all companies that market digital
assets in the UK, even those headquartered outside the country.
At the end
of September, the FCA issued reminders about the upcoming deadline, noting that
numerous firms had yet to comply with the new regulations.
In addition,
the FCA released data about financial promotions for the second quarter,
spanning April to June 2023. According to the data, regulatory actions led to
1,507 promotions being altered or withdrawn by companies under FCA oversight.
In addition, 400 warnings were issued to firms and individuals operating in the
UK without the required authorization, 11% of which were alerts about cloned
companies.
Despite
these warnings, companies had ample opportunity to adapt to the changes. The
FCA initially made the announcements in January 2022. Then, in February 2023,
the UK government published a document outlining the specifics. Concurrently,
the FCA evaluated companies’ preparedness for the new regulations set to take
effect in October, offering assistance where needed.
The British
financial market regulator was not idle over the past weekend, adding 143 new
entities to its warning list, primarily from the cryptocurrency sector.
Notably, the updated Financial Conduct Authority (FCA) list includes well-known
brands such as the cryptocurrency exchanges KuCoin and Huobi. The move is deliberate, as new cryptocurrency regulations came into effect in the country on October 8th.
In the case
of both Huobi and KuCoin, two cryptocurrency exchanges originating from Asia,
the FCA warning message is the same: “This firm may be promoting financial
services or products without our permission. You should avoid dealing with this
firm.”
The FCA
emphasizes that in order to promote cryptocurrency services, or any other
services, in the United Kingdom, a special authorization issued by the British
supervisory commission is required. The inclusion of these two exchanges on the
warning list indicates that Huobi and KuCoin lack such authorization.
@kucoincom and @HuobiGlobal were included on the @TheFCA ‘s warning list this weekend, along with over 140 other entities. pic.twitter.com/vWNZuucnCy
— Damian Chmiel (@ChmielDk) October 9, 2023
There are
many cryptocurrency exchanges worldwide; however, according to current FCA
data, only 42 entities are registered as crypto asset providers in the UK.
Moreover, since the beginning of 2020, the regulator has approved only 13% of
over 290 applications for such authorization.
Implementation
of New Cryptocurrency Regulations
October 8
marked the day of the activation of the UK’s revised financial promotions
framework for digital assets. The UK government has put into effect new laws
aimed at regulating how crypto assets are promoted to the public, focusing on
shielding UK residents from risky investments without sufficient knowledge.
This updated framework will be applicable to all companies that market digital
assets in the UK, even those headquartered outside the country.
At the end
of September, the FCA issued reminders about the upcoming deadline, noting that
numerous firms had yet to comply with the new regulations.
In addition,
the FCA released data about financial promotions for the second quarter,
spanning April to June 2023. According to the data, regulatory actions led to
1,507 promotions being altered or withdrawn by companies under FCA oversight.
In addition, 400 warnings were issued to firms and individuals operating in the
UK without the required authorization, 11% of which were alerts about cloned
companies.
Despite
these warnings, companies had ample opportunity to adapt to the changes. The
FCA initially made the announcements in January 2022. Then, in February 2023,
the UK government published a document outlining the specifics. Concurrently,
the FCA evaluated companies’ preparedness for the new regulations set to take
effect in October, offering assistance where needed.