Bitfinex, a cryptocurrency exchange platform, has been issued a warning by the UK Financial Conduct Authority (FCA) for alleged unauthorized promotion of financial services. The FCA has cautioned UK citizens to avoid using Bitfinex's services due to potential breaches of UK law.
The FCA has added Bitfinex to its warning list, suggesting that the firm might be promoting financial products without proper authorization. This action is in line with the FCA's mandate to ensure fair and transparent financial markets, established since its inception in 2013.
Bitfinex, which also offers margin trading and lending services, expressed disappointment at this development. On its blog, the company vehemently denied these allegations. It pointed out that it had engaged in detailed discussions with the FCA and had proactively announced measures in June to comply with the FCA’s requirements. These measures included issuing a customer notice explaining these efforts.
However, the FCA maintains that Bitfinex's promotional activities violate current legislation, specifically section 21 of the Financial Services and Markets Act. Such a violation could result in two years of imprisonment and an unlimited fine for Bitfinex's administration.
In a parallel development, the UK Treasury is crafting a new law aimed at regulating stablecoins. The proposed legislation intends to bring fiat currency-backed assets under the oversight of the FCA.
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