FTT’s recovery faces another hurdle as UK regulators label FTX as an “unauthorized firm”
- Cryptocurrency exchange FTX is currently unregistered with the authorities, which resulted in a warning from the FCA.
- Earlier, in August this year, crypto exchange Crypto.com joined the list of the few companies which received regulatory approval.
- FTT has been on a downtrend and is currently nearing a 3-month low, losing 16% in the span of a week.
Since not every country currently has its own set of rules and regulations for crypto, it is difficult for crypto-affiliated businesses to operate there. However, some basic guidelines have still been laid down by authorities, and the failure to adhere to them results in the problems being faced by FTX right now.
FTX warned by the FCA
As one of the top crypto exchanges in the world, FTX conducts transactions worth more than $2 billion in just 24 hours.
Since the crypto exchange was not registered with the Financial Conduct Authority (FCA), it received not only a warning from the regulatory body but also a public announcement made on September 16, labeling it as an “unauthorized firm”.
The announcement further read,
“This firm is not authorised by us and is targeting people in the UK. You will not have access to the Financial Ombudsman Service or be protected by the Financial Services Compensation Scheme (FSCS), so you are unlikely to get your money back if things go wrong.”
However, after consistent backlash from the crypto sector, the FCA changed its stance from going after crypto exchanges to taking similar actions. Just back in August this year, Crypto.com, another widely known cryptocurrency exchange, was given the regulatory approval to operate within specified norms.
But with this move against FTX, it doesn’t seem like FCA is sticking to its improved stance after all.
FTT takes the heat
The consequences of any and every decision pertaining to FTX are bound to be seen on its native token FTT. Right now, the cryptocurrency is not in a sound state to bear the brunt of such warnings.
Stuck under the downtrend that began last September, FTT has failed its multiple attempts at breaching through it. After being rejected following a push-through a week ago, FTT fell by 17.65% to trade at $24.87 at the time of writing.
Not only is this the lowest FTT has been in 3 months, but it also solidifies the active downtrend, visible by the presence of the blue dots of the Parabolic SAR above the candlesticks.
If such bearish conditions persist, recovery for FTT investors will become a fever dream.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
