BitMEX Not Authorized To Offer Financial Services In The UK, FCA Says

The Financial Conduct Authority (FCA), a financial regulatory agency in the United Kingdom, has recently accused crypto derivatives platform, BitMEX, of operating without its authorization.

In a warning notice issued by FCA on Tuesday, the financial regulator disclosed that BitMEX, one of the leading crypto exchanges, is offering financial services to clients in the UK without its authorization, a characteristic that is usually associated with fraudsters.

It also warned the public against any making any investments with BitMEX, since it has nothing authorized by the financial regulator to render financial services to citizens.

The warning notice adds,

This firm is not authorized by us and is targeting people in the UK. Based upon information we hold, we believe it is carrying on regulated activities which require authorization.

FCA, which recently became an anti-money laundering and counter-terrorist financing (AML/CTF) supervisor for crypto businesses, expects all crypto firms, both existing and new, to register with it to receive authorization to offer their services.

The financial watchdog had reportedly also published a similar warning against Kraken, a U.S.-based crypto exchange, a notice which was later removed.

BitMEX is one of the largest cryptocurrency exchanges, and as a result, it handles large crypto transactions every day. The firm also repeatedly argues that it is a transparent institution. 

Meanwhile, this is certainly not the first move against BitMEX by the British authorities. Last year, a complaint was filed against the crypto exchange regarding the company’s ad in local newspapers.

More recently, too, the Malta Financial Services Agency (MFSA) published a similar warning, reckoning that leading crypto exchange, Binance, is not authorized to operate in Malta.