UK’s FCA Issues Warning List Naming Top Crypto Exchanges like KuCoin and Huobi

On Sunday, October 8, the UK’s top regulatory agency – the Financial Conduct Authority (FCA) – issued a warning list to some of the top crypto exchanges like Huobi and KuCoin for marketing their crypto services without proper approval.

As of October 8, the UK has expanded its financial promotion regulations to encompass cryptoasset service providers, irrespective of their geographical location. The regulatory authority now mandates that all cryptocurrency platforms, regardless of their origin, must prominently display risk warnings to consumers in the UK and adhere to stricter technical rules.

This includes implementing a 24-hour cooling-off period for new customers. In a generic warning to KuCoin, Huobi, and other 147 firms, the FCA stated “This firm may be promoting financial services or products without our permission. You should avoid dealing with this firm”.

Failure to comply with these regulations can result in severe consequences. This includes requests to take down websites and apps, substantial fines without limits, and potential imprisonment.

UK’s FCA Tightens Crypto Rules

A spokesperson representing Huobi, often referred to as HTX, clarified that the company “does not conduct operations or promote its services or products within the UK.” KuCoin, while not actively operating within the UK, expressed its commitment to adapting its “products and services to align with the applicable laws and regulations of each country as much as possible,” as stated by the firm’s CEO, Johnny Lyu, in an emailed statement.

While the Financial Conduct Authority has been tightening its grip over the crypto market, exchanges are taking necessary action to comply with the rules. Two days before, Binance also unveiled its UK domain to comply with the rules.

Apart from exchanges, the UK’s FCA is also keeping a watch on crypto custodial solution providers. Last week, FCA also granted crypto custody firm Komainu, the license to operate as a custodian wallet provider.

Komainu has received approval to expand its cryptocurrency custody services in the UK, allowing the company to provide collateral management services via its platform, Komainu Connect. The recent warnings are a part of the UK’s proactive approach to swiftly identifying and exposing cryptocurrency companies that violate the expanded regulations.

The Financial Conduct Authority (FCA) is continuously updating its list of offenders, with new violations being added as they are discovered. Lucy Castledine, the director of consumer investments at the regulatory authority, shared this information with Bloomberg News.