UK regulator the Financial Conduct Authority (FCA) has warned that cryptocurrency exchange FTX is “not authorized by us and is targeting people in the UK”. It has advised consumers “to be wary of dealing with this unauthorized firm”.

FTX was launched in the US in 2019 by entrepreneur Sam Bankman-Fried and generated global trading revenue of $1.02bn in 2021. The Bahamas-based exchange recently expanded its operations to Europe after receiving approval from the Cyprus Securities and Exchange Commission (CySEC).

FTX’s initial response when contacted by media outlets was to say that it believed the FCA was warning people about a scammer impersonating the exchange because some of the telephone numbers listed had been reported as linked to known scams. CEO Bankman-Fried himself tweeted:

But the company acknowledged ftx.com – the website listed by the FCA and named in Bankman-Fried’s tweet – was genuine. It said it was “communicating with regulators” in response to requests for comment.

The FCA said: ”It’s important we issue warnings as quickly as possible and we will issue updates if further information comes to light”.

FTX has gained a reputation for attempting to rescue crypto firms that have been hit by this year’s market crash. Bankman-Fried told specialist crypto industry website Decrypt that FTX has a “sense of responsibility” to keep crypto businesses afloat because :”if we have real pain, if we have real blow-outs… it’s not fair for customers, it’s not going to be good for regulation”. He said FTX had $1bn to spend on acquisitions.

Gaining approval from CySEC was described by Bankman-Fried as “an important step in achieving our goal of becoming one of the ,most regulated exchanges in the world”. But the FCA warning has dealt that ambition a major blow, and is further evidence of the Authority’s determination to take a firm grip on the crypto space. Nearly 70 crypto businesses have withdrawn filings for registration in the face of tightening regulation since 2020, with 200 still being assessed.