FCA Says CoinBrokerz Faked Its Authorization And Added It To Caution List

UK’s Financial Conduct Authority (FCA) has added CoinBrokerz to caution list after they faked FCA’s authorization to operate. The regulatory agency has warned users not to use any of the crypto services provided by this company.

As the market expanded, several firms were created and some of them were just scams or performed fraudulent activities. Citing concerns about consumer protection and market integrity, the FCA has been analyzing the possibility to ban the sale of crypto-CFDs to retail investors.

According to Finance Magnates, the regulatory agency hinted that it could exclude derivatives referencing “cryptoassets that qualify as securities.”

Earlier in 2018, the FCA accepted a few cryptocurrency companies to start working within its sandbox. This would allow them to test their solutions and business models in the market. Although they would not be launched to the open market, they will be operating first in a controlled environment.

Furthermore, the FCA decided to blacklist a company that promoted their services without having any valid license to operate. The FCA informed that Pelham Capital is not authorized to promote its products.

Different regulatory agencies around the world are starting to take a more proactive stance towards virtual currencies and blockchain technology. The intention is to create a more clear regulatory and legal framework around these companies operating in the crypto market and with blockchain technology.

The U.S. Securities and Exchange Commission (SEC) has also been going behind some ICOs that were selling unregistered securities in the United States. Two of these ICOs are Paragon and Airfox. Both of them have to give back funds to investors that place their money in these companies. Additionally, they also had to pay a $250,000 fine.

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