The UK’s rules on financial promotions were widened starting on 8 October 2023 to include cryptoasset service providers — regardless of their location. All crypto platforms are now required by the regulator to display clear risk warnings to UK-based consumers and meet higher technical standards, including a 24-hour cooling-off period for new customers.
The FCA stated that these companies may be promoting financial services or products without their permission and that people should avoid dealing with them. The regulator’s warning for Huobi and KuCoin also applies for the other 147 companies it added to the list. Penalties for non-compliance can include takedown requests for websites and apps, unlimited fines, and even prison time.
Officials from Huobi said they do not operate or market their services or products in the UK, but are committed to adjusting their ‘products and services accordingly to ensure compliance with relevant laws and regulations in each country to the extent possible.’ Huobi’s team added that they hold licenses to operate in Lithuania, Gibraltar, Dubai, Australia, British Virgin Islands and South America, according to its website, but don’t list the UK as a prohibited venue.
Seychelles-based KuCoin reported that its platform is restricted in countries including the US, Singapore, Hong Kong, the mainland of China, Thailand, Malaysia, and Ontario, Canada. It too doesn’t name UK in its restricted locations list.
The new warnings come following the UK’s latest efforts to move fast in naming and shaming crypto firms that fall foul of expanded rules. The FCA is updating its warning list of violators hourly as new infractions come to light.
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