According to Cointelegraph: The Financial Conduct Authority (FCA) of the United Kingdom conducted a significant update to its warning list on October 8, adding numerous crypto exchanges branded as non-authorized firms that consumers "should avoid." The update added 143 new entities, among which major exchanges like Huobi-owned HTX and KuCoin feature prominently.
In line with UK regulations, companies seeking to "carry out crypto asset activities" need to either register with the FCA or be granted temporary operational status. Jayson Probin, the lead for crypto financial promotions at the FCA, issued a warning in July that failure to comply with these requirements may result in criminal charges.
He further stated that the FCA "will take robust action against persons illegally promoting to UK consumers," adding that their reactive measures could range from listing firms on their warning list, requesting take-downs of websites, social media accounts, apps, and other promotions violating the regulations, to direct enforcement action.
As of August, the FCA disclosed that it received 291 applications for registration since 2020 and approved only 38, representing about 13%. Currently, the FCA's list of registered crypto asset providers consists of 42 entities, including Bitstamp, Revolut, and Gemini.
In response to the FCA's stringent regulations, PayPal has recently put a hold on crypto transactions for its UK customers as it navigates compliance with the FCA's requirements. Similarly, Bybit, a Dubai-based cryptocurrency exchange, suspended all its UK services in late September, citing "regulatory changes."