Bitfinex listed on UK FCA Unauthorized Warning List

According to the Financial Conduct Authority (FCA) in the UK, the official announcement shows that the well-known exchange Bitfinex has been listed on the warning list as an unauthorized firm. You can find the FCA's announcement [here](https://www.fca.org.uk/news/warnings/bitfinex-bitfinexcom) and the warning list of unauthorized firms [here](https://www.fca.org.uk/consumers/warning-list-unauthorised-firms).

FCA: Bitfinex Promoting Without Authorization

The Financial Conduct Authority (FCA) of the UK added the well-known cryptocurrency exchange Bitfinex to its list of unauthorized financial companies on the 27th, indicating that the company may be promoting financial services or products without the necessary authorization from authorities, warning users to avoid engaging with this company.

The FCA stated that without authorization or approval, no company or individual is allowed to promote financial services in the UK.

Crypto Asset Financial Promotion Rules

Almost all financial-related companies and institutions in the UK are required to register with the FCA as authorized companies. In addition to general regulations, crypto companies are required to comply with the "Enhanced High-Risk Investments Financial Promotion Rules" and "Financial Promotion Rules for Cryptoassets." Companies that fail to meet these requirements and obtain FCA authorization may be listed on the warning list.

The policy primarily targets crypto-related companies both domestically and internationally. To promote crypto asset services in the UK, the following requirements must be met:

• Enhanced Risk Warning: Include risk warnings and regulatory content on trading-related pages

• Prohibition of Investment Incentives: Prohibit incentives like referral codes that encourage investment activities for monetary and non-monetary benefits

• 24-Hour Cooling-Off Period: New users must wait 24 hours before trading

• Personalized Risk Warning: Display risk warnings to first-time investors before promotion

• Improved Customer Categorization: Provide application forms to assist users in confirming their own categorization

• Suitability Test: Ensure users pass an assessment test on their knowledge and experience

While the policy aims to protect investors, many related companies and institutions have recently withdrawn from the UK market due to the need to modify backend logic of products, which would increase operational costs. Considering the evaluation of risks and benefits, many have chosen to exit the market.

Bitfinex's Response

According to Bitfinex's official blog, Bitfinex stated that they have had numerous discussions with the FCA over the past four months and have taken proactive measures to meet the FCA's requirements. They have also notified all customers of the new policy and have blocked a series of interfaces for users from the UK, including features within the exchange such as staking, credit cards, Lending Pro, Bitfinex Borrow, and various web and mobile pages that instruct users on how to make purchases.

Bitfinex mentioned that they have a good track record of cooperation with global regulatory and law enforcement agencies in combating crime, fraud, and protecting investors, although their efforts in this case have not been acknowledged.

Possible Future Developments

The FCA may take further action against companies that do not comply with the regulations. According to the above policy, unregistered crypto asset companies that fail to comply with regulations may violate the UK's Financial Services and Markets Act 2000, constituting a criminal offense punishable by up to two years in prison and an unlimited fine.