The UK's Financial Conduct Authority (FCA) made significant additions to its list of unauthorized companies to avoid on October 8, which included major cryptocurrency exchanges like Huobi-owned HTX and KuCoin. This list is designed to alert consumers about companies that lack the necessary authorization to conduct cryptocurrency activities in the UK. Companies engaging in crypto asset activities should either be registered with the FCA or possess provisional operating status, as per UK regulations.
The FCA's warning list provides minimal information, simply advising individuals to avoid dealing with the listed entities. Jayson Probin, the FCA's head of cryptocurrency financial promotion, had previously emphasized the regulatory consequences of non-compliance in July. He mentioned the possibility of placing companies on the warning list, demanding the closure of their websites, social media accounts, apps, and other promotional materials, in addition to taking legal enforcement actions.
Despite 291 registration applications received by the FCA since 2020, only 38, or approximately 13%, have been approved, according to data from August. Currently, the FCA's list of registered crypto asset providers comprises 42 entities, including notable names like Bitstamp, Revolut, and Gemini.
Amid the regulatory scrutiny, PayPal temporarily halted cryptocurrency transactions for its UK customers to ensure compliance with FCA requirements. Similarly, Dubai-based cryptocurrency exchange Bybit suspended its services in the UK in late September, citing "regulatory changes" as the reason behind the decision.
