The UK’s financial regulator, the Financial Conduct Authority (FCA), has recently taken several measures concerning cryptocurrency exchanges. The UK has updated the “list of should avoid” for 143 cryptocurrency exchanges operating in the country without a license. Some of these exchanges are major global platforms owned by KuCoin and Huobi’s HTX (formerly known as Huobi).
The institution mandates that companies offering crypto services within the UK borders either be officially registered with the FCA or have a temporary status to operate. FCA official Jayson Probin stated in July that companies not complying with these requirements could face legal sanctions.
“We will take robust action against persons illegally promoting to U.K. consumers. This may include, but it is not limited to, placing firms on our warning list requesting take downs of websites, social media accounts, apps and all other promotions that are in breach, and enforcement action.”Source: Cointelegraph
The FCA reported that since 2020, it has received registration applications from 291 crypto asset providers. However, only 13% of these applications, meaning 38 of them, were approved. The current list of registered entities includes leading firms such as Bitstamp, Revolut, and Gemini.
These strict regulations have caused some firms to re-evaluate their operations in the UK. For instance, PayPal temporarily suspended crypto transactions in the UK while investigating how to meet the FCA’s requirements. Similarly, the Dubai-based Bybit exchange also halted its services in the UK in September due to changes in legislation.