FCA Issues New ‘Get Rich Quick’ Warning Against Unregistered Cryptocurrency Brokerage Firm

Earlier today, the UK’s Financial Conduct Authority (FCA) released yet another statement against ‘Next Coin Market’ — an unregistered brokerage firm— that has been offering British nationals with a wide array of crypto-related offerings over the past few months.

To be even more specific, we can see that Next Coin Market is primarily providing its clients with a comprehensive range of “offshore investment services” such as CFDs on Bitcoin, Litecoin etc.

However, the FCA has made it clear that the firm is not authorized to conduct its business operations within the UK since all of its registration claims (that have been posted online) are false and unverifiable.

For those of our readers who may not remember, at the beginning of this year, the FCA took its first steps towards regulating the British crypto market. In this regard, the administrative body launched a comprehensive consultation regarding its plan to monitor the activities of various crypto exchanges, payment companies, wallet providers etc.

More On The Matter

Via a press release issued earlier today, the FCA highlighted the findings of another research study that pointed to the fact that a number of UK investors were simply buying alt-coins as a way of making a quick buck. This is because a massive chunk of the UK consumer market still perceives crypto-assets to be a “shortcut to easy money” rather than being legitimate SOV’s (Stores of Value) or cross-border payment avenues.

In addition to this, it has also come to light recently that the FCA is already considering the possibility of “banning all crypto-derived monetary offerings”. If such a framework comes into effect, retail investors will no longer be able to avail of unique financial tools such as:

  • CFDs
  • Digital Currency options and futures

Final Take

All of the above-mentioned actions come after the FCA had already decided to implement stricter leverage conditions on CFD trading. Not only that, the regulatory agency recently called into effect an

“outright ban on binary options”.

All of this is possible because even though crypto-assets themselves do not fall under the purview of the regulatory agency, their financial derivatives still do.

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