British Financial Regulator Issues Warning Against Illegal Crypto Firms

The Financial Conduct Authority (FCA) which is the British financial regulator, just one day ago issued a warning against an illegal crypto-related firm named Next Coin Market according to the official statement of the regulator that we have in our blockchain news today.

According to the regulator, the Bulgaria-based Next Coin falsely claimed to have the authorization to operate in the country from the UK financial authority and that it was able to offer crypto-related services to the British residents.

The Financial Conduct Authority explained that Next Coin was making users click a link that led them to a fake website that was well-created and made people believe that the company was legit and that it was authorized by the regulator. However, Next Coin was not registered according to the FCA and even turned out that the company is involved in criminal activity.

The regulator asked the public to report cases that are related to false claims of companies claiming to be authorized by the FCA. Before transferring money, the FCA advises the public to first research or report any concerns to the UK national reporting center for cybercrime and fraud-Action Fraud.

The FCA also made clear that anyone who operates as an unauthorized company is not protected by the Financial Services Compensation Scheme which means it cannot complain to the Financial Ombudsman Service which is the expert in resolving financial issues.

Also, very recently, the Swiss-based crypto bank Dukascopy issued multiple warnings against forex trading companies mainly GCG Asia which aims to scam people by representing as the bank’s authorized branch-company.