“You should avoid any interaction with Bitfinex. If you continue to do business with this firm you will no longer have access to the Financial Ombudsman Service. In disputed situations, you will not be protected by the Financial Services Compensation Scheme (FSCS), and if Bitfinex goes bankrupt, it is unlikely that you will recover your assets,” the FCA said in a statement.
The financial watchdog reminded that under current legislation, companies are prohibited from promoting financial services in the country without the necessary permission or approval. The FCA added that Bitfinex provides unauthorized services to UK citizens in breach of Article 21 of the Financial Services and Markets Act. This risks imprisonment for up to two years and an unlimited fine for the Bitfinex administration.
Earlier, the UK Treasury announced the preparation of a new law on the regulation of stablecoins, thanks to which assets backed by fiat currencies will be regulated by the UK Financial Conduct Authority (FCA).
Source: Bits
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