‘Non-authorized’ crypto firms cross 140, per U.K. FCA
- The latest updates ask crypto exchanges to warn their users about the risks associated with crypto investments.
- Many crypto firms have updated their platforms in order to comply with the new regulation.
The Financial Conduct Authority (FCA), the United Kingdom’s financial markets regulator, added 143 new crypto exchanges to its list of “non-authorized” firms on 8 October.
Though the regulatory body has not revealed any details about the update, it has advised customers in the U.K. to “avoid” dealing with such crypto firms.
The FCA must have granted permission or temporary status to crypto firms for them to operate in the U.K.
The latest updates ask crypto exchanges to provide fair warnings to their users about the risks associated with crypto investments. The marketing messaging must be “clear, fair and not misleading.” They must also include a 24-hour cooling-off period for new customers.
Firms take measures to comply with latest regulations
Many crypto firms have updated their mobile and online applications in reaction to the latest update in order to comply with the new regulations. Firms were quick to inform their customers about these updates, including additional “risk disclaimers” for crypto transactions.
The firms asked their users to upgrade their mobile apps.
Binance [BNB] launched a new webpage specifically for its customers in the U.K. After temporarily halting operations, it resumed operations of its mobile application in compliance with the latest regulations.
The firm also announced collaboration with the FCA-regulated firm Rebuilding Society for this purpose.
OKX has also made various changes geared to its UK retail customers. It reduced the number of tokens available in the country from over a hundred to only 40. It also incorporated a prominent risk advisory banner on its website.
Last week, Komainu obtained the license to operate in the U.K. Note that the firm is backed by Nomura, CoinShares, and Ledger. Bybit, a crypto exchange, also stopped its services in the region last month owing to “regulatory changes.”
PayPal also decided to halt crypto transactions for its customers in the U.K. until it figures out how to comply with the FCA’s requirements. Currently, there are only 42 crypto firms in the U.K. that are registered with the FCA.