Huobi & KuCoin Added to UK Warning List for Operating Without Registration
UK residents advised to be cautious with crypto exchanges.
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The UK’s Financial Conduct Authority (FCA) has added crypto exchanges Huobi and KuCoin to its list of unregistered companies, warning consumers that the platforms are providing services in the UK without regulatory approval.
The two exchanges were among dozens of crypto firms newly added to the FCA’s warning list on Sunday, as the regulator expands its oversight of the digital asset industry. Under new rules that went into effect on October 8th, all crypto companies marketing to UK consumers must be registered with the FCA and meet certain standards around risk disclosures and marketing practices.
“This firm may be providing or promoting financial services or products without our permission. You should avoid dealing with this firm and beware of scams,” stated the FCA on the warning pages for Huobi and KuCoin.
The regulatory crackdown comes after the FCA introduced stricter promotion rules in August, which included requirements for clear risk warnings and a ban on referral bonuses. Under the new rules, crypto firms must ensure that individuals have the appropriate knowledge and experience to invest in crypto.
Last month, Bybit announced that it would suspend its services for UK-based customers starting in October, citing new regulations by the FCA regarding crypto asset promotions.