The Financial Conduct Authority (FCA) has issued a warning note to FTX, a Bahama-based crypto exchange on 16 September, alleging it for offering financial services or products in the UK without obtaining its prior approval, which is required by the new regulation for cryptocurrency enacted in 2020 in order to ensure those companies meet the minimum standards of preventing money laundering and terrorist financing. The regulator alerts potential customers to the danger of financial loss or losing the right to seek protection from the Financial Services Compensation Scheme. Apart from this warning, the firm also received a cease and desist letter from the Federal Deposit Insurance Corporation (FDIC) on 19 August, accusing it of misleading the public about certain cryptocurrency-related products.