The Financial Conduct Authority (FCA) in the United Kingdom maintains a roster of 42 registered crypto asset providers, a tally that hasn’t shifted since August.
On Sunday, October 8, the FCA, the regulatory stalwart of the UK’s financial markets, undertook an eventful day, augmenting its cautionary catalog with several crypto exchanges that lack its stamp of authorization—a red flag for prospective customers.
A substantial 143 new entrants graced the warning list, featuring prominent exchanges such as HTX, owned by Huobi, and KuCoin. The warning list, however, discloses little more than a stark advisory: “You should steer clear of engaging with this entity.”
In the context of the UK, companies wishing to “conduct crypto asset activities” must either secure registration with the FCA or obtain provisional permission to function. In July, Jayson Probin, the FCA’s point person for crypto financial promotions, hinted in his private LinkedIn blog that non-compliance could have dire consequences:
“We are poised to take resolute measures against individuals who illicitly target UK consumers with crypto promotions. These measures encompass, but are not confined to, adding offending entities to our warning list, requesting the removal of non-compliant websites, social media profiles, applications, and any promotional activities in violation of regulations, alongside the initiation of enforcement actions.”
As of August, the FCA unveiled a telling statistic: since 2020, it has fielded a staggering 291 registration applications, but only 38 of these earned the coveted approval, constituting a mere 13% success rate. At the time of this communication, the FCA’s roster of approved crypto asset providers comprises a total of 42 entities, a roster that includes well-known names like Bitstamp, Revolut, and Gemini.
Notably, PayPal has recently suspended cryptocurrency transactions for its UK clientele, pending its alignment with the FCA’s compliance requirements. Meanwhile, Bybit, a cryptocurrency exchange headquartered in Dubai, ceased all operations in the UK in late September, citing “regulatory changes” as the impetus behind this strategic withdrawal.
