Unlicensed Cryptocurrency Broker Get Financial Gets Put on Notice by FCA
It recently came to light that Get Financial was operating without a valid FCA’s requirement license and as a result, it lacked the authority to provide investment services or to conduct any such activities within the UK’s borders. Despite the company’s lack of licensing, it stated on its website, www.getfinancial.com, that it was registered in the UK, Stain Vincent, and the Grenadines.
Unsurprisingly, Get Financial is not the only company to come under scrutiny for not abiding by regulations. In 2017, the FCA warned investors about cryptocurrency contracts for difference (CFD), and stated the risks involved with such contracts. Additionally, the FCA has scrutinized cryptocurrency brokers in general for less than outstanding practices.
Although the FCA has increased its regulatory scrutiny, not all financial assets have come under its purview. For instance, in late December 2017, the FCA decided not to regulate a digital asset class.
Considering the FCA’s actions, it is normal to wonder what the FCA’s further action will be in regard to Get Financial and any other brokers that adopt questionable practices. If anything, it seems that the FCA may continue warning investors that although they invest in a company, that investment may show no value at the end of the day. Additionally, the FCA has stated that:
“You should be aware that if you give money to an unauthorized firm, you will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if things go wrong.”
This type of statement is a clear warning to investors to take care when they decide to put their money into a specific project. The warnings come at the right time, especially considering the subpar practices that many cryptocurrency firms have adopted and all of the risk that they’ve caused. Furthermore, the FCA has issued reminders to traders who wish to conduct investment activities – before doing so, it is advisable to check the official Register to ensure that such providers are authorized to provide financial services.