The crypto world in the United Kingdom is evolving, and companies like Huobi and KuCoin are feeling the effects. On a recent Sunday, the UK’s Financial Conduct Authority (FCA) updated its warning list, adding Huobi, KuCoin, and 145 other digital asset firms to it. This comes as the FCA gets stricter about rules, now including crypto companies in its regulations starting from October 8th.
Why should you care? Read on.
The FCA had a clear message for Huobi and KuCoin.
“Promoting financial services or products without our permission is forbidden. Avoid dealing with these firms,” warned the FCA in its statement.
Not following the FCA’s rules comes with severe consequences, such as having your website taken down, facing hefty fines, and even the possibility of going to jail.
The FCA’s actions are all about keeping consumers safe. They’re making sure to update their warning list regularly to catch companies breaking the rules quickly. Lucy Castledine, the FCA’s Director of Consumer Investments, spoke about their commitment in an interview with Bloomberg News, saying, “We aim to be swift in calling out crypto firms that breach our expanded rules.”
Huobi and KuCoin were quick to react. A Huobi spokesperson insisted that the firm “does not operate or market its services or products in the UK.” However, the FCA’s jurisdiction now extends to any firm dealing with UK consumers, regardless of the company’s geographic location. Justin Sun, the head of Huobi, has faced regulatory issues before. Earlier this year, he dealt with allegations from the U.S. Securities and Exchange Commission regarding fraud and market manipulation linked to TRX, Tron’s cryptocurrency.
Read More: Justin Sun Accused of Wash-Trading on Huobi with “Fake” Stablecoins!
However, KuCoin’s CEO, Johnny Lyu, said they’re committed to following the laws and regulations in each country to the best of their abilities. Even though KuCoin is in Seychelles and restricts its operations in some places, the UK isn’t one of them.
The FCA’s warning list helps consumers know which companies to be cautious about. They specifically mention that dealing with unapproved companies might mean losing access to services like the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS) if things go wrong.
As the FCA tightens its grip on crypto companies, it’s clear that these businesses need to adapt or face serious consequences.
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