FCA issues new warnings on cryptocurrency operators

FCA issues new warnings on cryptocurrency operators. Two companies are reported as unauthorized to provide investment services.

FCA launches new warnings on cryptocurrency operators - fca3

Financial Conduct Authority (FCA) has issued a warning to British investors, targeting two cryptocurrency companies who are not authorized to provide investment services in the country - Local Bitcoin Ltd e BK Coin.

The warning comes just as European finance ministers are planning to discuss the cryptocurrency ecosystem in a few days, analyze its benefits and risks, and consider how the new assets.

The United Kingdom has so far adopted a vigilant approach on the cryptocurrency industry, so much so that the FCA itself (the British equivalent of our Consob) does not consider the cryptocurrency as regulated activities, although derivatives based on them fall under its supervisory powers.

Going back to the news of the last few hours, local bitcoin Ltd e BK Coin, apparently managed by the same people, are two operators who turn to UK investors a full range of cryptocurrency investment services, including CFDs. However, the FCA points out that the regulation required on both websites is not reliable.

This is yet another case in which the British authorities seem to have intensified their role in the sector, going to chase and regulate the illegal cryptocurrency brokers. In November 2017, the FCA had already issued a warning to investors regarding the contracts of cryptocurrency by difference (CFD), explaining the associated risks.

Furthermore, the UK regulatory authority sent a letter to CEOs of banks, insurance companies and investment firms last month to inform them of the risks associated with "crypto assets". The letter provided guidelines to financial operators to improve their oversight, increase control and improve due diligence checks.