UK financial regulatory body warns that BitMEX's services are not authorized in the UK.

The UK Financial Conduct Authority (FCA) has issued a warning to the cryptocurrency derivatives exchange BitMEX, alleging that the exchange has been providing financial services to UK residents without authorization. In addition, sources indicate that the UK Financial Conduct Authority may further issue warnings to cryptocurrency derivatives exchanges such as Deribit, CoinFLEX, and Bybit, which provide services to UK residents.

FCA Issues Warning to BitMEX

The Financial Conduct Authority (FCA) of the UK issued a warning to the cryptocurrency derivatives exchange BitMEX this Tuesday, stating that the platform has been providing services in the country without its authorization. The FCA emphasized in a press release that all companies and individuals offering, promoting, or selling financial services or products in the UK must be authorized by the regulatory body. However, BitMEX has been offering financial services or products in the UK without authorization. The FCA further urged investors to be cautious and avoid dealing with this unauthorized entity.

A spokesperson for BitMEX, when interviewed about the incident, stated:

"We are working closely with advisors to assess the situation, and currently, we are unable to comment."

Kraken Also Receives Warning?

In addition to BitMEX, the FCA also issued a similar warning to another cryptocurrency exchange, Kraken, on Tuesday, which was later removed. It is alleged that the notification was due to scammers falsely claiming to be Kraken, leading to a misjudgment by the FCA, and Kraken's compliance team is currently investigating the matter.

More Exchanges Likely to Receive Warnings

CEO of financial services company BCB Group, Landsberg-Sadie, stated in an interview that the reason for such incidents is that many cryptocurrency exchanges trading in altcoins have been neglecting their regulatory obligations, assuming that as long as they do not provide support for fiat currencies, they will not face any issues. Furthermore, with current market trends, regulatory concerns have become more serious as derivatives pose greater risks to consumers. Landsberg-Sadie mentioned:

"The FCA's statement satisfies its three core objectives of maintaining market efficiency, providing a framework for raising funds, and protecting consumers. Few would argue against such products being subject to strict regulation."

On the other hand, sources have revealed to the overseas media outlet The Block that the FCA may issue similar warnings to Deribit, CoinFLEX, and Bybit in the near future.

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• New Jersey Considers Following New York in Issuing Regulatory Licenses to Provide Investor Protection

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