UK Hits Hundreds of Crypto Exchanges with FCA Warnings

The UK’s Financial Conduct Authority (FCA) stepped up enforcement against unregistered or non-compliant crypto exchanges in October, issuing large numbers of warnings and taking legal action to clamp down on firms operating outside its regulatory remit.

Overview

The FCA issued hundreds of warnings to crypto exchanges that were not registered or authorised to provide services or promote crypto products to UK consumers. Some of the platforms flagged include Elite Bit Markets, Nexure Gainbit, Plux Crypto and HTX. 

These warnings are the regulator’s way of informing the public that these entities may pose a higher risk because they have not complied with FCA rules, particularly around financial promotions and anti-money-laundering requirements. 

The wave of warnings appears partly driven by stricter rules introduced in 2023. Firms that promote crypto-assets to UK consumers must be authorised, or have their promotions approved by an authorised firm, or meet certain registration requirements under the UK’s Money Laundering Regulations. 

Legal Action and Stricter Rules on Promotions

Alongside warnings, the FCA has begun pursuing legal action against exchanges that violate rules. A notable example is HTX (formerly Huobi), which is being sued in London’s High Court for unlawfully promoting crypto services to UK consumers without proper authorisation. 

The FCA said,

“We have seen crypto firms react positively to our financial promotions rules and regulations; however, where we still see poor practices, we will not hesitate to take action where firms appear to be breaching our rules.”

Under the FCA’s new financial promotions regime, crypto firms must include clear risk warnings, meet transparency standards, and adhere to Know Your Customer (KYC) and anti-money laundering (AML) controls. 

Violations of promotional rules may lead not only to regulatory sanctions but could incur criminal penalties; for example, the FCA’s rules enable sanctions, including possible prison terms for executives in extreme cases. 

Despite the clampdown, some firms have pushed back or delayed compliance; the FCA has flagged that many solicited promotions remain live even after warnings. 

What It Means for Crypto Firms and Consumers

For crypto exchanges and service providers, the October enforcement effort is a clear signal: operating in or marketing to the UK market demands compliance registration, proper authorisation, and transparent promotion practices.

Firms that have not yet registered or those that advertise crypto-related products to UK consumers must reassess their compliance posture immediately, or risk enforcement action, penalties, or removal from the public listing of services.

For consumers, the FCA’s warnings are intended to protect against scams, misleading promotions, or high-risk investment platforms. Users are advised to consult the FCA’s Warning List and verify whether a crypto platform is authorised to operate in the UK before engaging with it.

The crackdown also reflects a broader tension: striking a balance between innovation in digital finance and investor safeguards. As the UK adjusts its regulatory framework — for instance, by lifting certain bans like access to crypto-ETNs for retail investors — it is simultaneously tightening oversight to reduce risk.