UK Financial Conduct Authority warns hundreds of virtual asset exchanges over unlicensed operations
Summary
- The UK Financial Conduct Authority (FCA) said it sent warnings to hundreds of unlicensed virtual asset exchanges.
- The FCA said it has designated the provision of trading services to investors and advertising by unlicensed operators as an enforcement priority.
- Experts analyzed that these measures indicate an expansion of regulatory risk and the possibility of sanctions spreading across Europe.
The UK Financial Conduct Authority (FCA) is reported to have sent warnings to hundreds of unlicensed virtual asset (cryptocurrency) exchanges during the month of October. Moves to strengthen oversight of virtual asset service providers in the UK are now in full swing.
On the 22nd (local time), according to crypto-focused media outlet Cointelegraph, the FCA issued warning actions against multiple exchanges, including Elite Bit Markets, Nexsure Gainbit, and Flux Crypto.
The FCA has designated unlicensed operators that provide virtual asset trading services to, or advertise to, UK investors as targets for enforcement. In particular, regulatory risk has increased recently after exchange HTX was charged with illegal promotion targeting UK residents.
Experts analyzed that "UK authorities have entered a phase of trying to clearly set consumer protection standards for the virtual asset industry" and that "sanctions against unlicensed exchanges could spread across Europe."
JH Kim
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