The Financial Conduct Authority (FCA) has recently issued several warnings to the local investors and highlighted the unauthorized firms in this announcement. According to the Financial Conduct Authority, an unauthorized firm has been highlighted that was reportedly offering the FX and crypto services to the British residents. The firm was offering these services without receiving any authorization from the regulators.
According to FCA, Cryptenix is an unauthorized firm and has been targeting UK investors. It has been offering a wide range of offshore investment services and products related to FX, commodities, and stocks trading.
FCA Also Emphasized on People Dealing With Unauthorized Firms
FCA has said that all the British investors who have been targeted by Cryptenix should contact FCA in this regard. The ones who have transferred any money to the firm need to report this to the Action Fraud.
The regulator has stated that even the people who are dealing with these unauthorized firms will not be having any protection from the UK Lifeboat Scheme. Due to this, they will not be able to complain to the Financial Ombudsman Service regarding any fraud.
Recently, the UK government has also proposed to promote crypto assets under the sight of FCA. they do not focus on creating a separate framework for crypto assets.
Companies Selling Regulated Investment With Underlying Crypto Also Requires Authorization
John Glen, Treasury & City Minister, has said that all the companies which are even selling the regulated investment with an underlying crypto asset will also have to get it authorized under the FCA. With this, the regulator will have the power to regulate the promotion of crypto-asset. The regulator also seems quite concerned about the financial promotions by several firms. In recent years, there have been a huge number of such incidents in the financial service industry.