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The FCA banned FTX:

FTX is not authorised by the Financial Conduct Authority (“FCA”) of the United Kingdom (“UK”)

Except that’s not quite correct. And don’t let them tell us all otherwise. The FCA did not ban FTX for being dodgy bastards. Instead, the FCA did not approve FTX because they’d not filled out the paperwork.

Something like the difference between active and passive, sorta.

1 thought on “Interesting”

  1. Came to the conclusion years ago that most regulators are useless, because they’re passive. Extremely so. The amount of actual monitoring/auditing is basically zero; if the boxes get ticked, job done.

    Yet, the systems “work” because the regulated firms are paranoid about getting hit with fines – not so much the financial hit, but the reputational one. Their internal monitoring can be really quite aggressive. Well, they are the ones sending the bits of paper in with the boxes on, after all.

    You end up with two problems; the regulated firm that can’t be bothered, for whatever reason(s). And the regulated firm that is, so detects the (potential) problem, fires the bloke, and then owns up. And gets fined anyway, just in case. Why bother?

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