The regulator said that investors dealing with the crypto exchange may not be protected by the FSCS.
"Bitfinex is very disappointed by the action taken by the FCA," the exchange stated.
Bitfinex is under scrutiny by the regulators in the UK. The
Financial Conduct Authority (FCA) raised concerns about the cryptocurrency
exchange today (Friday), warning investors of potential risks associated with it.
The regulator stated that Bitfinex may be promoting financial services or
products without its permission.
"If you deal with this firm, you won't have
access to the Financial Ombudsman Service if you have a complaint," the
financial watchdog cautioned. "You also won't be protected by the
Financial Services Compensation Scheme if things go wrong."
In a publicly-released statement, Bitfinex wrote: "Bitfinex is very disappointed by the action taken by the FCA."
"Over the past four months, Bitfinex has held detailed discussions with the FCA and has proactively taken measures to meet the FCA’s requirements including issuing a notice to all its customers providing detail of all the measures it has taken to meet the FCA’s requirements."
FCA Identifies Critical Crypto Marketing Issues
In the official statement, the FCA highlighted three
major issues with the marketing of crypto assets. Firstly, it pointed out that many
promotions emphasize the "safety," "security," and
"ease" of using crypto services without adequately addressing the
associated risks.
This lack of transparency is a cause for concern as
it may mislead potential investors. Secondly, risk warnings are often obscured
by small fonts or non-prominent positioning, making it easy for consumers to
overlook critical information about the risks involved in crypto investments.
In response to these issues, the FCA urged
companies that approve financial promotions for crypto firms to strictly adhere to regulatory guidelines. Failure to do so can result in actions such as
restrictions being placed on the offending firm. For instance, the FCA has
already imposed restrictions on some firms for not meeting the required standards
in approving crypto asset promotions.
Strict Adherence to Regulatory Guidelines
In September, the FCA issued its final warning in
relation to the recently implemented financial promotion rules. This warning,
authored by Lucy Castledine, the Director of Consumer Investment, and Matthew Long, the Director of Payments and Digital Assets, emphasized the need for firms to
urgently reconsider their position if they believe they will be in breach of
the new regulations.
The FCA underlined that the new regulatory regime is
not meant to hinder consumer access to existing assets but is aimed at
preventing high-risk investment activity and promoting consumer protection.
The financial promotion regime is expansive,
encompassing communications made through websites or apps. Most, if not all,
crypto asset firms offering services to UK consumers are expected to fall under
this new regulation. The regime's core objective is to ensure consumers base
their investment decisions on accurate information.
Firms that fail to comply with the new regime face
severe consequences, including criminal charges. Penalties may include
imprisonment of up to two years, unlimited fines, or both.
"Bitfinex has also blocked a range of website pages to visitors from the UK including the Bitfinex Affiliates pages, Staking pages, Credit / Debit Cards, Lending Pro, Bitfinex Borrow, various ‘How to buy’ pages and the Mobile App information page," Bitfinex added.
"Bitfinex has a strong track-record of working with regulatory authorities and law enforcement agencies globally to combat crime and scams and aid the protection of investors. It is therefore disappointing that its efforts have not been acknowledged in this case."
Bitfinex is under scrutiny by the regulators in the UK. The
Financial Conduct Authority (FCA) raised concerns about the cryptocurrency
exchange today (Friday), warning investors of potential risks associated with it.
The regulator stated that Bitfinex may be promoting financial services or
products without its permission.
"If you deal with this firm, you won't have
access to the Financial Ombudsman Service if you have a complaint," the
financial watchdog cautioned. "You also won't be protected by the
Financial Services Compensation Scheme if things go wrong."
In a publicly-released statement, Bitfinex wrote: "Bitfinex is very disappointed by the action taken by the FCA."
"Over the past four months, Bitfinex has held detailed discussions with the FCA and has proactively taken measures to meet the FCA’s requirements including issuing a notice to all its customers providing detail of all the measures it has taken to meet the FCA’s requirements."
FCA Identifies Critical Crypto Marketing Issues
In the official statement, the FCA highlighted three
major issues with the marketing of crypto assets. Firstly, it pointed out that many
promotions emphasize the "safety," "security," and
"ease" of using crypto services without adequately addressing the
associated risks.
This lack of transparency is a cause for concern as
it may mislead potential investors. Secondly, risk warnings are often obscured
by small fonts or non-prominent positioning, making it easy for consumers to
overlook critical information about the risks involved in crypto investments.
In response to these issues, the FCA urged
companies that approve financial promotions for crypto firms to strictly adhere to regulatory guidelines. Failure to do so can result in actions such as
restrictions being placed on the offending firm. For instance, the FCA has
already imposed restrictions on some firms for not meeting the required standards
in approving crypto asset promotions.
Strict Adherence to Regulatory Guidelines
In September, the FCA issued its final warning in
relation to the recently implemented financial promotion rules. This warning,
authored by Lucy Castledine, the Director of Consumer Investment, and Matthew Long, the Director of Payments and Digital Assets, emphasized the need for firms to
urgently reconsider their position if they believe they will be in breach of
the new regulations.
The FCA underlined that the new regulatory regime is
not meant to hinder consumer access to existing assets but is aimed at
preventing high-risk investment activity and promoting consumer protection.
The financial promotion regime is expansive,
encompassing communications made through websites or apps. Most, if not all,
crypto asset firms offering services to UK consumers are expected to fall under
this new regulation. The regime's core objective is to ensure consumers base
their investment decisions on accurate information.
Firms that fail to comply with the new regime face
severe consequences, including criminal charges. Penalties may include
imprisonment of up to two years, unlimited fines, or both.
"Bitfinex has also blocked a range of website pages to visitors from the UK including the Bitfinex Affiliates pages, Staking pages, Credit / Debit Cards, Lending Pro, Bitfinex Borrow, various ‘How to buy’ pages and the Mobile App information page," Bitfinex added.
"Bitfinex has a strong track-record of working with regulatory authorities and law enforcement agencies globally to combat crime and scams and aid the protection of investors. It is therefore disappointing that its efforts have not been acknowledged in this case."
Tradu Introduces New Crypto Exchange with Competitive Fees
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
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🔔 Subscribe to our YouTube channel for more!🔔
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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