FCA Warns Crypto Investors About SafeMarkets Broker, Citing No Authorization in UK to Operate
UK’s Financial Conduct Authority (FCA) has just issued a warning to investors due to the fact that there is a company offering crypto services in the UK without the proper authorization. The company is called SafeMarkets and it is based in Estonia. However, the regulatory agency says that it is not authorized to target UK citizens.
The company works through the website www.safemarkets.biz and it is connected to another fraudulent firm that was red-flagged earlier this year by the FCA. The website www.safemarkets.com handled FX and CFDs trading services with a fake registration from Estonia.
These two websites were allegedly operated by two Bulgarian citizens using different entities located in the Marshall Islands, Samoa, Estonia and the United Kingdom. This information released by the FCA shows that there is an increased interest in regulatory agencies to go behind cryptocurrency-related scams and fraudulent companies in the space.
The FCA has recently released a warning related to another website called CoinBrokerz. At BitcoinExchangeGuide we wrote that the company faked its authorization to operate in the country. Furthermore, it was added to a UK investor caution list.
Another company called Pelham Capital has also been blacklisted after promoting services without having a valid license to operate.
In the future, the FCA could implement a ban on the sale of derivatives based on virtual currencies. In the coming months, the FCA will be launching a consultation regarding this possibility to ban the sale of derivatives. This would include CFDs, options and futures related to virtual currency prices to retail investors.
According to the regulatory agency, cryptoassets have no intrinsic value and investors should be prepared to lose all the funds invested on them. Additionally, it notes that digital assets are also a risk for financial stability.
However, the FCA does not have the same point of view as the Governor of the Bank of England, Mark Carney. According to Reuters, he mentioned that crypto-assets do not pose risks to global financial stability at this time.