
The UK's Financial Conduct Authority has increased its scrutiny of the cryptocurrency industry.
The trading services of Huobi and KuCoin, among other exchanges, have been highlighted for offering their services to U.K. residents without the necessary regulatory permissions, Bloomberg said.
As discussions about regulatory frameworks for digital assets grow globally, such developments are expected to be a focal point at the Benzinga's Future of Digital Assets conference on Nov. 14.
From Oct. 8, the U.K. expanded its financial promotion regulations to encompass all cryptoasset service providers, irrespective of their geographical location.
The FCA now requires all crypto platforms to present explicit risk warnings to U.K. users and adhere to elevated technical standards, such as a 24-hour waiting period for newcomers.
Non-adherence to these rules can result in severe consequences, such as website takedowns and limitless monetary penalties to possible incarceration.
SEC said Justin Sun, the founder of Tron TRON/USD, was responsible for deceptive practices and market manipulation linked to TRX, Tron blockchain's native cryptocurrency.
Although Huobi boasts to have operational licenses in various regions, such as Lithuania, Gibraltar, and Dubai, the U.K. isn't mentioned as a restricted area on its platform.
KuCoin, based in Seychelles, provides services in several regions, such as the U.S., Singapore, and mainland China. The United Kingdom does not feature on its list of restricted territories.
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