BitMEX, one of the world’s largest cryptocurrency derivative trading platforms, has been accused by the United Kingdom’s Financial Conduct Authority (FCA) who believe that the company has been operating without authorization in the region.
A recent statement from the FCA says that BitMEX has been looking to attract UK investors and even targeting them without having the proper authorization to do so in the UK. This is a rather big blow for both BitMEX and the cryptocurrency industry at large as it is another incident of a crypto business rubbing regulators up the wrong way.
Furthermore, the FCA is none pleased with BitMex and the way in which they have decided to operate as in their opening statements they have offered advice on how to protect oneself from scammers and reasons to be wary of BitMEX.
“We believe this firm has been providing financial services or products in the UK without our authorization. Find out why to be especially wary of dealing with this unauthorised firm and how to protect yourself from scammers,” the statement read.
Cracking down on Kraken
While the FCA does not outwardly call BitMEX a scam, it does warn that caution should be taken when dealing with the company that does not have the authorization to operate. More so, this seems to be a broader crackdown as a similar warning from the FCA was aimed at Kraken this week, however, that page is now blank.
The FCA also questioned Kraken and its right to operate without authorization, however, it was short-lived as something must have come to light to make the FCA backtrack.
In the case of BitMex, there is no evidence to suggest that the company is operating fraudulently, and it would appear that more investigation would need to be conducted for a full allegation to be laid.
The FCA has only recently taken cryptocurrency under its jurisdiction but when, in January, when the announcement was made, there were also indications that new requirements would emerge for companies wanting to operate with crypto in the UK.
The fact that the FCA is investigating some rather large and established names in the cryptocurrency space and finding suspicions of regulatory concerns is worrying for the broader industry at large.
The likes of Kraken and BitMEX have such a large following that they are expected to have ensured full regulatory compliance but for a company to be called out like this, from the FCA, paints a picture of mistrust.