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Regulators are taking various steps to prevent abuses in the cryptocurrency industry. Recently, it has been on the agenda in the UK. The US has not yet been able to take serious steps regarding regulations, and it will be a long time before the full implementation of the EU’s MiCA regulation. It is not easy to take comprehensive regulatory steps, so temporary measures are aimed at reducing risks.
Bitfinex Added to the Blacklist
Bitfinex has been added to the warning list of the Financial Conduct Authority of the United Kingdom, which includes companies that may be promoting unauthorized financial services or products. This is not a blacklist that everyone understands, but rather a list that shows that the relevant companies may not comply with the law. The announcement made by the FCA states that UK citizens should not work with this company.
The financial regulatory agency stated that companies cannot promote financial services in the country without the necessary authorization or approval. It was also mentioned that Bitfinex poses a risk because it has not obtained the necessary permissions from the authorities and may be targeting potential customers in the region with its advertisements. Crypto investors who have been victims of misleading ads have been submitting their complaints to the courts for the past 2 years. The grievances caused by lending institutions such as Voyager and Celsius, which offer lending services, have grown with ads focused on “zero risk guaranteed earnings”.
Bitfinex Responded
Binance temporarily suspended the acceptance of new users in the region due to compliance with crypto advertising rules. Many exchanges are pausing their services to work with consultants in order to comply with the new rules. Bitfinex, on the other hand, issued an announcement in response to the recent “blacklisting” move.
“Bitfinex has had detailed discussions with the FCA over the past four months and has taken various steps to meet the requirements of the FCA. We have shared a broad summary of the measures we have taken with all customers. We have taken proactive measures to meet the requirements of the FCA”.
Bitfinex also stated that it has blocked a number of web pages for visitors from the UK in order to comply with the FCA’s new rules on cryptocurrency asset promotions.
The new rules of the regulatory agency apply to anyone who publishes advertisements related to crypto. Those who want to offer crypto services to residents in the region must obtain approval for their advertisements from the FCA or individuals authorized by the FCA.
Officials of crypto companies that do not comply with the new rules could face imprisonment of up to 2 years and fines for violating Section 21 of the Financial Services and Markets Act.
