British financial supervision warns of crypto exchange FTX

The British financial supervisory authority has warned consumers to deal with FTX in the most recent collision between British authorities and offshore companies for digital assets, the cryptocurrency exchange operated by the billionaire Sam Bankman-Fried.

The Financial Conduct Authority said that the stock exchange based on the Bahamas apparently offers products and services in the United Kingdom without their approval, according to a statement on the website of the supervisory authority.

"This company is not authorized by us and aims at people in Great Britain," says the explanation. FTX did not react immediately to a request for comment.

The step against FTX, one of the largest exchanges for digital assets, takes place after a hard struggle between the FCA and Binance, as Great Britain increases its efforts to control the often unregulated world of cryptocurrencies.

The FCA intervened against Binance last year and said that their "complex and risky financial products" represented "a significant risk for consumers" and the world's largest crypto exchange "did not answer" some of its fundamental inquiries, which made it impossible to overcome the extensive group.

Binance, one of the main competitors of FTX, has undertaken to fully comply with the regulations and to again apply for supervision in the United Kingdom.

crypto stock exchange and wallet providers must register for money laundering supervision at the FCA if their activities with digital assets are "practiced by business in the United Kingdom by means of business activities".

The FCA and other financial supervisory authorities around the world were faced with the challenge of protecting consumers and enforcing standards in cryptoma markets, where many of the largest groups are based in offshore jurisdiction. Both FTX and the Binance registered on Cayman Island have founded American subsidiaries to calm the US authorities, but offer their international basis from services in other countries.

The European Department of FTX announced this month that the Cypriot Financial Supervisory Authority has given it a license for an investment company because the crypto company urges to expand on the entire continent. Bankman-Fried, Chief Executive from FTX, said at the time: "Securing this license in the European Union is an important step to reach our goal of becoming one of the most regulated stock exchanges in the world."

The FCA said that British customers who have to do with FTX have no access to British consumer protection such as the Financial Ombudsman or the Financial Services Compensation Scheme and it is "unlikely that they will get it back if something goes wrong".