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FTX in Extreme Difficulty Due to Regulations Amid Crypto Downturn

19 Sep 2022 By: Divya Behl
FTX in Extreme Diffi

The conflict between UK financial regulators and corporations that deal in digital assets is becoming more heated.

In the most recent development, the British watchdog advised customers not to utilise Sam Bankman-(SBF) Fried's FTX cryptocurrency exchange.

Pressure from UK watchdogs on FTX

Financial Conduct Authority (FCA) warned that the FTX is providing goods and other services in the countries without any authorization, according to reports. The authorities stated that the digital asset firm was operating illegally and was preying on UK citizens.

Neither FTX nor SBF have responded to this accusation. The UK regulator's significant accusation of one of the biggest cryptocurrency exchanges, however, is not unexpected. Binance and FCA engaged in a bloody conflict. In the meantime, UK watchdogs are moving to establish rules for this uncontrolled digital asset market.

The FCA previously issued a warning against Binance on the grounds that it is providing sophisticated and high-risk financial products. For investors, the crypto exchange poses a significant risk. The regulator also mentioned that the CZ cryptocurrency exchange had ignored some of its straightforward inquiries.

However, Binance pledged to abide by the rules and achieve full compliance. In the UK, it will reapply for supervision. One of FTX's main competitors is Binance.

CoinGabbar has reported that the European Union (EU) and the United Kingdom (UK) have different views on cryptocurrency rules.