The UK’s Financial Conduct Authority (FCA) has released a warning against the crypto derivatives exchange BitMEX. As per the FCA’s website, the agency asks its citizens to be “wary of dealing with this unauthorised firm” and “protect yourself from scammers.”
In order to offer, promote, or sell financial products and services in the UK, almost all the individuals and firms have to be authorised by the agency.
BitMEX is not authorized by the UK’s financial regulatory body that operates independently of the UK Government, which it says is “targeting” people in the country and believes “it is carrying on regulated activities which require authorisation.”
The FCA isn’t particularly calling BitMEX to be involved in any fraudulent or suspicious activity but does mention that those operating without the license might be “scams.”
The agency advises people to deal with only those companies that are registered with it and can confirm the licensing status of a firm by visiting the UK’s register for license holders.
Crypto Asset Companies Fall Under FCA’s Supervision
The FAC’s notice to BitMEX came just a day after the agency issued a similar warning about yet another crypto exchange Kraken. However, the notice is now removed and showing a missing page instead.
Just about two months back, the FCA announced that crypto asset companies fall under its jurisdiction. As part of the amendments to the nation’s anti-money laundering (AML) and counter-terrorist financing regulations, it requires both new and existing companies to comply with the new requirements.
These requirements included the identification and assessment of the level of money laundering and terrorist financing risk created by these businesses, performing due diligence on every customer and “enhanced due diligence” on those that identify as high risk. It also requires a designated member of senior management to be responsible for compliance with all the requirements.
As per this, the crypto-related businesses must hold licenses no later than Jan. 2021.