Crypto News– On Sunday, October 8, the United Kingdom’s primary regulatory body, the Financial Conduct Authority (FCA), issued a cautionary list targeting some of the leading cryptocurrency exchanges such as Huobi and KuCoin for marketing their crypto services without proper authorization.
As of October 8, the UK has expanded its financial promotion regulations to cover cryptocurrency service providers, regardless of their geographical location. The regulatory body now mandates that all cryptocurrency platforms, regardless of origin, must prominently display risk warnings to consumers in the UK and adhere to stricter technical guidelines.
UK Financial Conduct Authority (FCA) Releases Warning List, Including Major Crypto Platforms KuCoin and Huobi
This includes implementing a 24-hour cooling-off period for new customers. In a general warning issued to KuCoin, Huobi, and 147 other companies, the FCA stated, “This firm may be promoting financial services or products without our permission. You should avoid dealing with this firm.”
Failure to comply with these regulations can result in severe consequences, including requests to take down websites and apps, substantial fines without limits, and potential imprisonment.
UK’s FCA Strengthens Crypto Regulations A spokesperson for Huobi, often referred to as HTX, clarified that the company “does not conduct operations or promote its services or products within the UK.” KuCoin, while not actively operating within the UK, expressed its commitment to adapting its “products and services to align with the applicable laws and regulations of each country as much as possible,” as stated by the firm’s CEO, Johnny Lyu, in an emailed statement.
In addition to exchanges, the UK’s FCA is also monitoring cryptocurrency custody solution providers. Last week, the FCA granted a cryptocurrency custody firm, Komainu, a license to operate as a custodian wallet provider.
Komainu has received approval to expand its cryptocurrency custody services in the UK, allowing the company to provide collateral management services through its platform, Komainu Connect. These recent warnings are part of the UK’s proactive approach to quickly identify and expose cryptocurrency companies that violate the expanded regulations.
The Financial Conduct Authority (FCA) continues to update its list of offenders, with new violations added as they are discovered. Lucy Castledine, the director of consumer investments at the regulatory authority, shared this information with Bloomberg News.
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