This cookie is set by GDPR Cookie Consent plugin. These cookies ensure basic functionalities and security features of the website, anonymously. The FCA said UK clients dealing with FTX would not have access to UK consumer protections such as the financial ombudsman or financial services compensation scheme and would be “unlikely to get money back if things go wrong”.Necessary cookies are absolutely essential for the website to function properly. Bankman-Fried, FTX’s chief executive, said at the time: “Securing this licence in the European Union is an important step in achieving our goal of becoming one of the most regulated exchanges in the world.” Both FTX and Cayman Island-registered Binance have set up American affiliates to appease US authorities but they offer services in other countries from their international base.įTX’s European division this month announced that Cyprus’s financial regulator had granted it an investment firm licence, as the crypto firm pushes to expand across the continent.

The FCA and other financial regulators around the world have faced a challenge trying to protect consumers and impose standards in crypto markets, where many of the largest groups are based in offshore jurisdictions. The FCA said in response: “It’s important we issue warnings as quickly as possible and will issue updates if further information comes to light.”Ĭrypto exchange and wallet providers have to register with the FCA for anti-money laundering supervision if their digital asset activity is “carried on by way of business in the UK”, according to an FCA guide. “We’re looking into it and communicating with regulators,” said FTX. However, the spokesperson acknowledged that the website identified by the FCA – ftx.com – is the real website of the company. A spokesperson for FTX said they believed the regulator intended to warn consumers about a scam impersonating the exchange because some of the phone numbers the regulator listed had been reported as linked to scams.

Financial watchdog