- Cryptocurrency exchange FTX is currently unregistered with the authorities, which resulted in a warning from the FCA.
- Earlier, in August this year, crypto exchange Crypto.com joined the list of the few companies which received regulatory approval.
- FTT has been on a downtrend and is currently nearing a 3-month low, losing 16% in the span of a week.
Since not every country currently has its own set of rules and regulations for crypto, it is difficult for crypto-affiliated businesses to operate there. However, some basic guidelines have still been laid down by authorities, and the failure to adhere to them results in the problems being faced by FTX right now.
FTX warned by the FCA
As one of the top crypto exchanges in the world, FTX conducts transactions worth more than $2 billion in just 24 hours.
Since the crypto exchange was not registered with the Financial Conduct Authority (FCA), it received not only a warning from the regulatory body but also a public announcement made on September 16, labeling it as an “unauthorized firm”.
The announcement further read,
“This firm is not authorised by us and is targeting people in the UK. You will not have access to the Financial Ombudsman Service or be protected by the Financial Services Compensation Scheme (FSCS), so you are unlikely to get your money back if things go wrong.”
However, after consistent backlash from the crypto sector, the FCA changed its stance from going after crypto exchanges to taking similar actions. Just back in August this year, Crypto.com, another widely known cryptocurrency exchange, was given the regulatory approval to operate within specified norms.
But with this move against FTX, it doesn’t seem like FCA is sticking to its improved stance after all.
FTT takes the heat
The consequences of any and every decision pertaining to FTX are bound to be seen on its native token FTT. Right now, the cryptocurrency is not in a sound state to bear the brunt of such warnings.
Stuck under the downtrend that began last September, FTT has failed its multiple attempts at breaching through it. After being rejected following a push-through a week ago, FTT fell by 17.65% to trade at $24.87 at the time of writing.
Not only is this the lowest FTT has been in 3 months, but it also solidifies the active downtrend, visible by the presence of the blue dots of the Parabolic SAR above the candlesticks.
If such bearish conditions persist, recovery for FTT investors will become a fever dream.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.