Financial Conduct Authority (FCA) Catches ‘Fair Oaks Crypto’ For Fake Authorization
On Tuesday, August 7, 2018, the Financial Conduct Authority (FCA) has warned British investors against associating with Fair Oaks Crypto, as the latter is claimed to have falsified the legitimacy of its business, namely with the use of “fake authorization”.
As per Finance Magnates, the FCA does not consider cryptocurrencies as being regulated, which for the time being is accurate, however they do see any derivatives as being the contrary. Fair Oaks supposedly falls into this category. The firm has been advertising its multiple services, which include CFDs on diverse profiles like cryptocurrencies, metals and energy.
More astonishing is that Fair Oaks Crypto was not prosperous in concealing the fact that the firm did not have any appropriate registration number on its main webpage, nor was it granted the authority to conduct its operations within the UK.
Another accusation that the FCA made is that of illegal impersonation, that is, advertising Fair Oaks Crypto as being tied to the Fair Oaks Capital Limited.
The latter has since cautioned its customers of the impersonation, noting that it was,
“operating from France, is using the Fair Oaks name […] its website www.fair-oakscrypto.com.” Customers have also been made aware of potential phone calls or email they might receive, adding that it has nothing to do with Fair Oaks Capital Limited.
Such impersonation is not new whether it be the crypto sphere or our traditional system. The FCA has allegedly caught others, namely FX brands, for not having the necessary licenses to operate their businesses. As per Finance Magnates, registration is fundamental, as it ensures optimal security and protects investors due to the ability to project the potential a firm has by its financial standing.