FCA Warns Against Huobi, KuCoin, and 140+ Crypto Exchanges

London, UK - In an eye-opening move by the Financial Conduct Authority (FCA) of the United Kingdom, over 140 cryptocurrency exchanges, including big players like Huobi's HTX and KuCoin, have been flagged as non-authorized firms. The crucial message？ UK consumers should steer clear of these entities to protect their investments and avoid potential scams.

The UK has a clear regulatory framework when it comes to cryptocurrency exchanges. Any firm wishing to provide crypto asset services within the country must either register with the FCA or receive temporary operational clearance. This is crucial, not just for legal purposes, but to ensure the safety of consumers' funds.

Earlier this year, Jayson Probin, who heads crypto financial promotions at the FCA, issued a clear warning. He emphasized that any failure to comply with these standards could lead to criminal proceedings. Beyond that, the FCA has the power to take a host of preventive actions. This includes flagging companies on their warning list, and demanding the shutdown of websites, social media accounts, apps, and any other promotions that breach the rules. If necessary, the FCA can also take direct enforcement measures.

Yet, despite these stringent regulations, the alarming fact is that only a handful of applications have met the FCA's standards. Since 2020, out of 291 firms that applied for registration, only 38 have been approved, a mere 13%. Presently, the official FCA list of sanctioned crypto asset providers includes only 42 entities. Some notable names among these are Bitstamp, Revolut, and Gemini.

Interestingly, these regulations have led some major companies to re-evaluate their UK operations. PayPal, the global online payments giant, has temporarily suspended its crypto transactions for UK users, aiming to ensure full compliance with the FCA's guidelines. Similarly, Bybit, a cryptocurrency exchange based in Dubai, ceased its entire UK operations last month due to these “regulatory changes.”

The Bottom Line for UK Residents

For all those in the UK dabbling in cryptocurrencies or considering entering the world of digital assets, this advisory cannot be stressed enough: Always choose regulated firms. Your money's safety depends on this crucial decision. Investing in unauthorized entities puts you at high risk of scams and potential financial loss.

Stay informed. Keep yourself updated on the FCA's advisory about unauthorized firms and make informed choices. Consider downloading the WikiFX App for real-time updates.

Download the App here: https://www.wikifx.com/en/download.html