The British Financial Conduct Authority (FCA) recently issued fresh warnings to local investors to be aware of unauthorized brokers working in the UK markets. It also issued a warning against Cryptenix, an illegal crypto broker.
Unauthorized operations in the UK
Cryptenix is the trading name used by the Finplex Group LTD. The company claims to be based in Limassol Cyprus.
The FCA issued several warnings against unauthorized firms working in the UK jurisdiction. The regulator said that these unauthorized firms are offering forex and cryptocurrency-related services to the British. The company was posing as an authorized dealer in the UK. The company is targeting investors in the UK and providing a full range of offshore investment services. It is providing forex, stock trading, and commodities trading services.
Britons said that people who have been approached by Cryptenix should contact the FCA. People who have sent money to the company must report the incident to Action Fraud. The watchdog also said that anyone who is dealing with unauthorized firms will not be protected under the UK lifeboat scheme. As a result, they cannot complain to the Financial Ombudsman Service.
FCA guidance comes after government warning
The British government proposed to introduce crypto-asset promotion into the purview of the FCA. It will provide the regulator the right to bring oversight to the industry without having to create a new framework from scratch. John Glen, an economic secretary to the Treasury & City Minister said that companies selling regulated investments with an underlying cryptocurrency should get FCA authorization.
When the FCA gets the power to regulator companies selling certain types of crypto assets, it would get the power to stamp out misleading advertising more easily. The regulator has been focusing extensively on retail investments and trading brokers. Financial scams are becoming more sophisticated and trying to hide their contacts and corporate details. The watchdog has also highlighted its issues over the financial promotions that falsely claimed to be regulated by the FCA.