The UK's financial markets regulator and the Financial Conduct Authority (FCA) on October 8 added several crypto exchanges to its warning list of non-authorized firms that customers need to avoid. In fact, the UK FCA had issued a warning to crypto assets to comply with the new rules from October 2023. Along with this, FCA had also said that till the approval is given, the companies may get time till January 8, 2024 to address the technical issues. Because the FCA aims to ensure a fair and honest market for crypto firms with warnings about the risks. So that customers can get the facility of a good market without any risk. Apart from this, the FCA also mentioned penalties for crypto firms that do not comply with these rules, which also include warning listing and account removal.
Let us tell you that FCA has added 143 new entities to its warning list, which includes the names of China and Singapore based HTX and KuCoin exchanges respectively. However, companies operating crypto assets in the UK must be registered with the FCA or have temporary status to operate crypto assets. The FCA had revealed in August that since 2020 it had received 291 applications for registration and only 38 of them were approved. This figure is only 13% of the applications received. Let us tell you that the names of 42 institutions like Bitstamp, Revolut and Gemini are included in the list of registered crypto assets providers of FCA.
Dubai headquartered cryptocurrency exchange Bybit suspended all its services in the UK in September due to regulatory changes. Bybit says our goal is to focus on regulatory compliance and potentially launch services once again in the future. In addition to Bybit, PayPal has halted crypto transactions for its UK customers until it figures out how to complete all required FCA formalities.
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