The UK’s Financial Conduct Authority (FCA) has warned Britons against using cryptocurrency broker Cryptenix, as the regulator believes the firm “has been providing financial services or products in the UK without our authorisation.”
In the announcement, the FCA pointed out that the firm if offering cryptocurrency-related and FX services to UK residents without being authorized to do so. Cryptenix is reportedly a trading firm part of Finplex Group LTD, and is said to be targeting UK investors with a full range of offshore investment services, including FX, commodities, and stocks as well as cryptocurrencies.
The regulator asks UK residents who have been approached by Cryptenix to reach out, and adds that anyone who transferred funds to the firm should report the incident to Action Fraud. Dealing with an unauthorized firm, the FCA added, isn’t protected by the UK lifeboat scheme, and as such anyone affected cannot complain to the Financial Ombudsman Service.
According to Finance Magnates, the warning comes weeks after the UK government proposed to bring the promotion of cryptocurrencies into the scope of the markets watchdog’s existing oversight, rather than creating new framework for these products. John Glen, economic secretary to the Treasury & City Minister, was quoted as saying that even companies selling regulated investment with an underlying cryptoasset element might need authorization from the FCA.
The FCA has reportedly been focusing on retail investment and trading brokers, as scammers are using increasingly sophisticated tactics to swindle investors.
Featured image via Pixabay.
Credit: Source link