Recently, the Financial Conduct Authority (FCA) in the United Kingdom issued a warning to Bitfinex, accusing them of promoting financial services or products without the necessary authorization from the regulatory authority. Additionally, they advised investors to avoid trading with this company.
In particular, individuals participating in Bitfinex will not have access to the Financial Ombudsman Service to resolve complaints. Moreover, they will not be covered by the Financial Services Compensation Scheme in case of adverse events.
Bitfinex responded to this warning, expressing their disappointment with the FCA’s actions. They revealed that over the past four months, Bitfinex has engaged in numerous discussions with the FCA and proactively implemented measures to comply with the FCA’s requirements. They also adhere to various stringent regulations, such as restrictions on UK citizens’ access to staking-related websites, affiliate programs, credit/debit cards, and various “how-to-buy” pages.
The exchange emphasized their collaboration with global regulatory agencies and law enforcement to combat illegal activities and protect investors. Therefore, the FCA’s warning seemed to undermine all the efforts Bitfinex has made.
However, the FCA’s warning is part of new regulations regarding three main concerns about cryptocurrency marketing in the UK. To address these concerns, the FCA calls for responsible companies to approve their cryptocurrency-related marketing programs to ensure strict compliance with the new regulations. The regulatory authority stated that failing to do so could lead to restrictions on entities that violate these rules.
The FCA emphasized that the new legal framework aims not to hinder access to existing assets but rather to prevent high-risk investment activities while promoting user protection.
Bitfinex remains committed to providing services to customers in full compliance with the regulatory requirements of any specific legal jurisdiction.
Bitfinex is a cryptocurrency exchange owned and operated by iFinex Inc., established in 2012. It was one of the first professional platforms to cater to the growing interest in cryptocurrency trading, accounting for over 10% of the trading volume.
Over time, Bitfinex has strengthened its position among individual and institutional traders in the field of digital asset investment.
In addition to price charting tools and advanced trading features supporting market analysis, Bitfinex offers spot, margin, and peer-to-peer lending trading, OTC trading, and derivative trading with various types of currencies and digital assets.
Bitfinex’s strategy focuses on providing simultaneous support, tools, and system enhancements for professional traders and liquidity providers worldwide.