UK's FCA Expands Crypto Warning List, PayPal and Bybit Hit Regulatory Hurdles
Summary:
On October 8, The Financial Conduct Authority (FCA), the UK's financial markets regulator, added 143 entities including several major crypto exchanges, to its cautionary list of non-approved companies. Non-compliance with the UK's crypto asset regulation could result in legal implications. The FCA revealed it has so far received 291 registration applications, approving only 13%. Currently, PayPal has suspended UK crypto transactions and Dubai-based exchange Bybit has halted its UK services due to regulatory changes.
On October 8, a busy Sunday, The Financial Conduct Authority (FCA), the UK's financial markets custodian, had expanded its cautionary directory of non-approved corporations that consumers "ought to steer clear of," to include multiple crypto exchanges. The warning list swelled by an additional 143 entries, featuring major exchanges like Huobi/HTX and KuCoin, originally established in China and Singapore. No further information was provided, beyond the imperative, "You should avoid doing business with this company".
In relation to this, the UK based crypto custodian, Komainu, has successfully registered with CoinShares. In the UK milieu, companies that pursue activities related to crypto assets are required to either hold registration with the FCA or possess temporary privileges for operation. Non-compliance with the said directives could result in legal implications, as indicated by the crypto financial promotions lead at the FCA, Jayson Probin in July. The FCA intends to take strong measures against unauthorized promotions to UK consumers which may involve adding firms to the warning list, mandated take-down of webpages, social media accounts, apps, and other infringed promotions.
By August, the FCA disclosed that it has received 291 registration requests from 2020, granting approval to a mere 38 applications, approximately 13%. As of the current moment, the FCA’s list of authorized crypto asset suppliers comprises 42 companies, such as Bitstamp, Revolut, and Gemini.
PayPal has put a recent stop to crypto transactions for its UK consumers until it can fully adhere to the standards set by the FCA. Bybit, a crypto exchange with its main offices in Dubai, suspended its entire range of services in the UK towards the end of September, citing "changes in the regulatory environment.”
Published At
10/9/2023 8:01:58 AM
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