coinspress.com
On October 8, the UK's Financial Conduct Authority (FCA) issued a warning to major crypto exchanges like Huobi and KuCoin for promoting their services without proper approval.
The UK expanded its financial promotion regulations on that date to include all crypto service providers, regardless of location.
These providers must now prominently display risk warnings to UK consumers and adhere to stricter technical rules, including a 24-hour cooling-off period for new customers.
Non-compliance can result in website takedowns, substantial fines, and potential imprisonment.
Huobi clarified it doesn’t operate in the UK, while KuCoin expressed its commitment to follow applicable laws.
Binance also established a UK domain to comply. The FCA is also monitoring crypto custodial providers, recently granting Komainu a license to operate as a custodian wallet provider and expand its services, including collateral management, in the UK.
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These actions are part of the UK’s proactive stance against non-compliant crypto companies.
The FCA continuously updates its list of offenders as it discovers new violations. Lucy Castledine, the director of consumer investments at the FCA, shared this information, emphasizing their dedication to upholding regulatory standards.