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FCA: BitMEX "is not allowed" to operate in the United Kingdom


Crypto derivatives exchange BitMEX is “not allowed” to operate in the United Kingdom, according to a warning message from the country's financial watchdog.

UK Financial Regulatory Authority (FCA) has released announced on March 4, in which they stated that BitMEX is providing services in their country without a license.

"BitMEX is not authorized by us and is targeting the public in the United Kingdom. Based on the information we have, we believe they are implementing regulatory activities that require authorization, "FCA said.

When making comments, a BitMEX spokesman told The Block: "We are working closely with our consultants to assess the situation. We have nothing more to say at the moment. "

Kraken is also in trouble

FCA also issued a similar warning to cryptocurrency exchange Kraken on Tuesday, but the agency later removed it. The Block is known to be a mistake on the FCA side and Kraken's compliance team is currently working on this issue with FCA.

Notably, the futures trading platform, acquired by Kraken – Crypto Facilities, is operating under FCA's control, according to the watchdog's website.

More alerts?

A source close to the issue told The Block that FCA could issue warnings like this to cryptocurrency exchanges. Deribit, CoinFLEX and Bybit may be the next names, the source said.

At the time of writing, all three exchanges have not been listed on the FCA registration website.

John Jansen, CEO of Deribit, told The Block that the exchange didn't focus on finding customers in the UK or actively promoting the service in the country, so there was “no problem”. .

"To proactively provide services in any country in the EU, Deribit is also required to register with the relevant or regulated agencies. More clearly; This will be needed in every country – where we actively seek customers. So instead of registering with every authority in the EU, Deribit simply doesn't actively approach potential customers in the EU or operate from the EU, "Jansen added.

As for the warnings from FCA, Jansen said these were to make citizens aware of unregulated exchanges. “This is nothing special,” he said, and repeated: “As long as an unregulated exchange does not actively advertise or operate in the UK, there is no problem.”

Last month, FCA became a watchdog for compliance with cryptocurrency operations in the United Kingdom. Therefore, all existing and newly established cryptocurrency companies must register with the agency. The deadline for existing businesses to register is January 2021.

The Block has contacted FCA as well as exchanges CoinFLEX and Bybit for more information, this article will be updated.

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According to The Block
Translated by ToiYeuBitcoin

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