A New Warning-FTX is not authorised to operate in the UK

September 22, 2022

FTX is a cryptocurrency derivatives exchange launched in May 2019. The company was founded by Sam Bankman-Fried, who also founded the algorithmic trading firm Alameda Research. FTX offers a variety of derivative products including futures, options, and leveraged tokens. The FTX token is an ERC-20 token that grants holders a discount on trading fees.

It also offers an ” Insurance Fund” which is used to cover users’ losses in the event of flash crashes or other unforeseen events. In addition, FTX provides an API for developers to build third-party applications on top of the FTX exchange. The exchange is designed for both professional and retail traders. It is headquartered in San Francisco and has offices in New York, Hong Kong, and Singapore.

What makes FTX stand out from its competitors?

The FTX exchange offers many features not found on other exchanges, such as:

An overnight funding rate that is passed on to users instead of being kept by the exchange

A composable order book that allows for the creation of new markets
The ability to short spot markets with leverage
Tokenized BTC and ETH futures contracts that are backed by real BTC and ETH held in cold storage
TX also has its own token, FTT, which can be used to discount trading fees. The exchange is designed for both professional and retail traders.

The exchange supports spot and futures trading of major cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and XRP. FTX also offers tokenized assets that track the price of traditional securities such as stocks, commodities, and foreign exchange rates. In September 2019, FTX launched its own native token, FTT, which can be used to pay trading fees or trade on the platform.

The launch of FTT was followed by the launch of the FTX ecosystem fund, which invests in projects that build on the FTX platform. To date, FTX has raised over $8 million from investors including Galaxy Digital, Three Arrows Capital, and 8VC.

Platforms similar to FTX

Xena exchange

Xena was created with the vision of building a better financial future for everyone. They believe that crypto assets will play a major role in the global economy, and we want to make it easy for everyone to access and use them. That’s why the Xena exchange was built. It allows anyone to easily buy, sell, or trade crypto assets. It currently supports BTC, ETH, LTC, and XRP, and is constantly adding new assets. It is also working on adding support for fiat currencies, so that you can easily convert your fiat into crypto and vice versa. With Xena, you can be up and running in minutes, and start trading world-class assets from anywhere in the world.

There are a few key ways in which FTX is better than Xena Exchange. First, it offers more options for trading and arbitrage. For example, you can trade futures on FTX, which are not available on Xena Exchange. This gives you more opportunities to make profitable trades. Second, FTX has lower fees than Xena Exchange.

This is especially important for high-volume traders who can take advantage of the volume discounts offered by FTX. Finally, FTX offers a variety of other features that are not available on Xena Exchange, such as OTC trading, margin trading, and a mobile app. These features make FTX a more comprehensive and user-friendly platform for cryptocurrency trading.

Coinbase

Coinbase is a digital asset exchange company founded in 2012. The platform allows users to buy and sell cryptocurrencies, as well as store them in a wallet. Coinbase supports Bitcoin, Ethereum, Litecoin, and more. The company is based in San Francisco and has over 35 million users worldwide. Coinbase allows users to buy and sell cryptocurrencies, as well as store them in a wallet. It also offers services for merchants who want to accept cryptocurrency payments, as well as an API for developers to build applications on top of the Coinbase platform.

There are many reasons why FTX is better than Coinbase. To start with, FTX offers a much wider range of assets than Coinbase. In addition, it provides users with access to futures and options markets, allowing for more complex trading strategies. Another key advantage of FTX is that it offers lower fees than Coinbase. For example, FTX charges 0.02% for spot trades, while Coinbase charges 0.50%. This makes FTX much more affordable for high-frequency traders.

Finally, it has built-in support for bots and algorithmic trading. This means that users can automate their trading strategies and take advantage of market movements more effectively. In conclusion, FTX is a superior exchange to Coinbase in terms of both asset selection and trading fees.

Why has FCA warned FTX to be banned in the UK?

The Financial Conduct Authority (FCA) has warned crypto unicorn FTX that it is not authorised to operate in the UK. The FCA said that the firm had been providing “unauthorised investment services” in the UK and had “no permission to do so”.

FTX is not the first crypto exchange to come under the regulator’s radar. In 2019, the FCA issued warnings to three exchanges – Binance, Ethfinex, and Bitfinex – over their activities in the UK. The regulator has also been scrutinising initial coin offerings (ICOs) and has launched a consultation on the rules governing crypto assets. However, the FCA’s warning to FTX is noteworthy as it is one of the most high-profile names in the crypto world.

FTX is backed by some of the biggest names in the industry, including Sequoia Capital, Andreessen Horowitz, and Polychain Capital. The exchange has quickly gained a reputation for innovation, launching products such as tokenized equity futures and volatility indices. It is also one of the few exchanges to offer leverage on Bitcoin futures. In light of the FCA’s warning, it remains to be seen whether FTX will be able to continue operating in the UK.

What loss will be faced by UK residents and FTX itself

UK residents who have been using the FTX cryptocurrency exchange will face some losses after the exchange is labelled as unauthorized in the country. This means that UK residents will not be able to buy or sell crypto assets on FTX. UK users will also be unable to access their FTX accounts. The FCA’s decision is based on concerns about consumer protection and market integrity.

The UK is one of the leading markets for online FX trading, and the recent warning will have a significant impact on the company. If it is banned in the future, the loss of access to the UK market will be a major blow to FTX, as it is one of the most liquid and deep markets in the world. The company will also lose out on potential revenues from UK clients, which could dent its bottom line.

In addition, the warning could damage FTX’s reputation and make it difficult to attract new clients in other jurisdictions. Overall, the FCA’s decision is a major setback for the company, and it remains to be seen how it will recover from this blow.

How was Binance affected by the Ban by FCA in the past?

Binance, the world’s largest cryptocurrency exchange by trading volume, was banned in the UK in 2021. The exchange had been allowing users to trade cryptocurrencies without a license, and FCA warned that it could be operating illegally. Binance has since ceased operations in the UK, and its CEO has said that the ban will cost the company “tens of millions of pounds.” In addition to the financial losses, Binance’s reputation has also been damaged by the ban.

After being banned in the UK, Binance lost many users. The UK is one of Binance’s largest markets, and the ban caused many users to switch to other exchanges. It also lost trust among some users, as the ban raised concerns about the safety of using the platform. In addition, the ban resulted in a loss of revenue for the company, as UK users were no longer able to trade on the platform. While Binance has since recovered from the ban, it highlights the importance of having a presence in multiple markets.

FCA’s stance is clear that the new crypto-focused regulations implemented in 2020 are there to supervise all the companies operating within this environment. They want the companies to meet the minimum standards to prevent money laundering and terrorist financing. Now we have to wait and see what FTX has planned for the future after this warning and how will the team guarantee no financial crimes.

The good news is that we have a special QR and Referral code, where if you sign up and use the code you will get free crypto, under the terms and conditions applied.