UK’s FCA Adds 143 Crypto Exchanges, Including Huobi-owned HTX and KuCoin, to Warning List

The Financial Conduct Authority (FCA), the regulatory authority overseeing financial markets in the United Kingdom, has made a significant update to its warning list, incorporating 143 new entities. Among these are prominent cryptocurrency exchanges like Huobi-owned HTX and KuCoin, urging consumers to exercise caution and refrain from engaging with these flagged firms.

In the UK, firms involved in “crypto asset activities” are required to either be registered with the FCA or have been granted temporary operating permission.

This regulatory move is in response to the growing interest in cryptocurrency investments and aims to ensure potential customers are adequately informed about the associated risks.

Jayson Probin, the FCA’s crypto financial promotions lead, highlighted the consequences of non-compliance, which could range from placement on the warning list to enforcement actions. He stated:

“We will take robust action against persons illegally promoting to U.K. consumers.”

As of August, the FCA had received 291 applications for registration from crypto-related businesses since 2020. However, only 38 of these applications, about 13%, were approved, underscoring the stringent criteria set by the regulatory body.

Currently, the FCA’s list of registered crypto asset providers includes 42 entities, including prominent names like Bitstamp, Revolut, and Gemini.

The impact of these regulatory changes is already visible across the cryptocurrency industry. Major players like PayPal have temporarily halted crypto transactions for their UK customers while they work on aligning with the FCA’s requirements.

Similarly, unregistered firms like ByBit have suspended their services to UK clients, demonstrating the immediate effects of regulatory shifts.

Cryptocurrency exchanges are actively responding to the evolving regulatory landscape. Binance, a global exchange, has collaborated with the regional peer-to-peer lending platform Rebuildingsociety to establish a localized domain for UK customers. This domain will display Binance products and services compliant with UK rules, aligning with the recent compliance update.

Additionally, OKX, another major exchange, has made adjustments to its operations in response to the regulatory changes. The number of assets in its token sale has been reduced to approximately 40, and clear risk warnings have been added to its user interface, prioritizing transparency and compliance with regulatory mandates.