UK Regulator FCA Adds Major Crypto Exchanges to Warning List

The Financial Conduct Authority (FCA), the regulatory body overseeing the United Kingdom's financial markets, took action on Sunday, October 8, by adding numerous cryptocurrency exchanges to its list of unregistered firms that customers are advised to steer clear of. This update saw 143 new entities included on the warning list, which notably featured major exchanges like HTX, owned by Huobi, and KuCoin. The warning list provides limited information but strongly advises customers to avoid dealing with these companies.

In the UK, firms engaging in "crypto asset activities" must either be registered with the FCA or possess temporary status to operate legally. In July, Jayson Probin, the crypto financial promotions lead at the FCA, warned that non-compliance could lead to criminal charges. The FCA has been taking robust action against those illegally promoting services to UK consumers, including placing firms on their warning list, requesting takedowns of websites, social media accounts, apps, and other promotional materials in violation of regulations.

As of August, the FCA reported receiving 291 registration applications since 2020, with only 38 approvals, equating to roughly 13% success rate. At the time of this report, the FCA's list of registered crypto asset providers includes 42 entities, such as Bitstamp, Revolut, and Gemini.

In recent developments, PayPal temporarily suspended crypto transactions for its UK customers while working to ensure compliance with FCA requirements. Additionally, Dubai-based cryptocurrency exchange Bybit ceased all its services in the UK in late September due to regulatory changes.