Justin Sun’s crypto exchange, Poloniex, has come under the radar of the UK Financial Conduct Authority (FCA) for offering financial services without the required permissions.
Poloniex, recently hit by a substantial hack, is now confronted with fresh challenges in the United Kingdom.
UK Citizens Might Not Get Investors’ Protection While Dealing With Poloniex
The FCA’s official website warns that the crypto exchange may have been conducting business with UK citizens without registering with the financial watchdog. The FCA wrote:
“This firm may be promoting financial services or products without our permission. You should avoid dealing with this firm.
‘Firms and individuals cannot promote financial services in the UK without the necessary authorization or approval.”
Furthermore, the FCA has stated that individuals engaging with Poloniex will not be eligible for investor protection in the event of any issues with the business. Last month, Poloniex lost approximately $117 million to hackers.
Read more: Crypto Project Security: A Guide to Early Threat Detection
The screenshot below shows that in 2023, there are 17.66 million crypto users in the UK. The number of users is forecast to increase to 22.43 million by 2028.
Hence, the FCA is ramping up its efforts to keep a check on crypto businesses. In November, BeInCrypto reported that the FCA issued 146 alerts on the first day of new crypto promotion regulations.
It published a 32-page guidebook for the firms to ensure their crypto promotions are “fair, clear, and not misleading.”
Read more: How Does Regulation Impact Crypto Marketing? A Complete Guide
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