FCA or Financial Conduct Authority of the United Kingdom have issued a warning against many scams that popped up resonantly and are targeting the British investors.
The scammers have been using celebrity images, good looking websites or prestigious London addresses as a click bate in order to lure in investors.
“Scam firms can manipulate software to distort prices and investment returns. They may scam people into buying non-existent cryptocurrencies. They are also known to suddenly close consumers’ online accounts and refuse to transfer the funds to them or ask for more money before the funds can be transferred.”
The Financial Conduct Authority have made it clear that cryptocurrencies are not regulated by them at all which means that crypto exchanges and brokers are out of their jurisdictional reach. What the agency do regulate are crypto derivatives which include futures, contracts for difference and options.
The most important thing that investors should pay attention to are to do regular checks on the companies they plan to work with on whether they have received all of the required authorizations in order to sell or advertise products, or even go through agency’s ScamSmart list of companies to avoid.
There were two other warnings issued by the agency this month only for the so called crypto clone firms that have been falsely claiming to have FCA authorization.