Leading cryptocurrency exchanges HTX (formerly known as Huobi) and KuCoin were among over 140 digital asset companies recently added to the UK Financial Conduct Authority's (FCA) warning list.

Wellington Court Financial Services Ltd is listed as well and cannot conduct regulated activity in the UK.

The FCA has taken this step due to concerns about these companies marketing their services in the UK without obtaining the necessary approvals.

In an effort to tighten its regulatory oversight of the cryptocurrency industry, the UK expanded its rules on financial promotions as of 8 October, encompassing cryptoasset service providers, regardless of their geographic location.

All cryptocurrency platforms must now adhere to stringent requirements, including displaying clear risk warnings to UK-based consumers and implementing higher technical standards, such as a mandatory 24-hour cooling-off period for new customers.

The FCA issued a generic warning message for both Huobi and KuCoin, cautioning the public to avoid engaging with these firms if they are promoting financial services or products without regulatory approval.

Non-compliance with these regulations can result in penalties ranging from takedown requests for websites and apps to substantial fines and even imprisonment.

The FCA stated:

"This firm may be promoting financial services or products without our permission. You should avoid dealing with this firm."

Huobi HTX and KuCoin On FCA's Warning List

Huobi, also known as HTX, contends that it does not operate or market its services in the UK.

KuCoin, headquartered in Seychelles, has restrictions in place for various countries, including the United States (US), Singapore, Hong Kong, mainland China, Thailand, Malaysia, and Ontario, Canada, but it does not explicitly mention the UK as a restricted location.

Both Huobi and KuCoin have outlined their respective operating licenses in multiple international jurisdictions on their websites, though the UK is notably absent from Huobi's list.

These warnings align with the UK's proactive approach to identifying and publicly disclosing crypto firms that do not comply with its expanding regulatory framework, with the FCA regularly updating its warning list in response to emerging infractions.