Huobi and KuCoin Join 147 Crypto Firms on UK Financial Watchdog’s Red List
The post Huobi and KuCoin Join 147 Crypto Firms on UK Financial Watchdog’s Red List appeared first on Coinpedia Fintech News
The crypto landscape in the United Kingdom is changing, and companies like Huobi and KuCoin are learning this the hard way. On Sunday, the UK’s Financial Conduct Authority (FCA) updated its warning list, adding Huobi, KuCoin, and 145 other digital asset companies. This comes as the FCA ramps up its regulatory enforcement, extending its financial promotion rules to include cryptoasset service providers as of October 8th.
Cracking Down on Crypto
“Promoting financial services or products without our permission is forbidden. Avoid dealing with these firms,” warned the FCA in its statement targeting Huobi and KuCoin.
In the enforcement realm, non-compliance comes at a steep price, including website takedown notices, unlimited fines, and even potential imprisonment.
FCA’s move is part of a larger strategy aimed at consumer protection. The regulatory body has committed to updating its warning list hourly to keep pace with new violations. “We aim to be swift in calling out crypto firms that breach our expanded rules,” said Lucy Castledine, the FCA’s Director of Consumer Investments, in a recent interview with Bloomberg News.
The Firms Respond
Huobi and KuCoin were quick to react. A Huobi spokesperson insisted that the firm “does not operate or market its services or products in the UK.” However, the FCA’s jurisdiction now extends to any firm dealing with UK consumers, regardless of the company’s geographic location. Justin Sun, the crypto mogul at the helm of Huobi, is no stranger to regulatory turbulence. Earlier this year, Sun faced allegations from the U.S. Securities and Exchange Commission for fraud and market manipulation concerning TRX, Tron’s native cryptocurrency.
On the other hand, KuCoin’s CEO, Johnny Lyu, asserted that the company is “committed to ensuring compliance with relevant laws and regulations in each country to the extent possible.” KuCoin is based in Seychelles and has named several jurisdictions restricting operations, but the UK is conspicuously absent from that list.
The FCA’s warning list is designed to be a quick reference guide for consumers. The authority explicitly states that dealing with unauthorized firms means forfeiting coverage from the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS) if things go awry.
As the FCA tightens its grip, crypto firms worldwide must adapt or face severe consequences.
