The UK financial regulator, the Financial Conduct Authority (FCA), issued out a number of warnings to local investors today. These warnings highlighted various firms known to solicit customers within the UK jurisdiction without the proper authorizations. In particular, the FCA pointed out that one of the brokers highlighted in this latest salvo of warnings, Cryptenix, is offering crypto and FX-related services to British residents without holding the proper authorizations to do so.

Playing A Dangerous Game Of Pretend

Cryptenix is doing this, all the while posing as an authorized company. It claims to be a trading name of Finplex Group LTD, targeting UK investors with an array of offshore investment services. These services include commodities, FX, and stock trading products.

The FCA warned any British citizen approached by Cryptenix to contact it immediately. Should anyone have transferred funding to the firm, the FCA further urged these individuals to report the incident to Action Fraud.

Stipulations Over Regulation

As always, the FCA stressed the fact that any citizen doing business with a firm without the proper authorization, isn’t protected by the UK lifeboat scheme. What this means, is these participants are unable to lodge a complaint to the Financial Ombudsman Service, should there be a problem.

This warning from the FCA comes just a few weeks after the UK had its government propose to have the FCA’s scope of oversight be extended to the promotion of crypto-assets. This comes as an alternative to creating an entirely new framework just for these sorts of products.

Fastest Way To Regulate Crypto Advertising

John Glen stands as the economic secretary to the Treasury & City minister, and cited concerns regarding the protection of investors. He highlighted that even companies selling regulated investments with an underlying element of cryptocurrency, might need authorization from the FCA to do so. Of course, this is dependant on the activity itself, Glen highlighted.

Allowing the FCA to have jurisdiction regarding the regulation of crypto asset promotion, at least certain kinds of crypto, stands as the quickest way possible of doing this. This, in turn, stands as the fastest way to stop misleading advertising to proliferate within the country.

The FCA has been honing its focus in regard to retail trading and investment brokers. This is due to financial scams becoming more sophisticated by the day in relation to hiding its true nature, corporate details, as well as contacts. Recently, the FCA highlighted its concerts regarding financial promotions that falsely implied that a firm’s entire activity set is regulated by either the FCA, or other regulators, while the contrary is the truth.