Crypto broker CoinBurp does not hold the full regulatory permissions before Monday’s planned launch of its $BURP token, FCA warns consumers.
July 26, 2021, | AtoZ Markets – The Financial Conduct Authority (FCA) has issued a warning to consumers on Sunday after discovering that a Crypto broker, CoinBurp, is intending to launch a crypto asset offering despite not being fully authorized.
FCA warns consumers over CoinBurp crypto launch
The British watchdog became aware of promotional material indicating that Coinburp Limited was intending to launch the CoinBurp $BURP Token and Initial DEX Offering on July 26.
The firm is not yet fully FCA registered under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (MLRs) but has submitted an application to the FCA for registration.
Coinburp Limited does appear on the FCA’s Temporary Registration Register (TRR) which was established to allow existing crypto asset businesses to continue trading whilst the regulator assesses their application.
The TRR does not allow any firm to claim to be registered or authorized by the FCA as firms and their personnel have not yet been assessed as fit and proper.
The FCA warned it has very limited powers to protect consumers if they invest in crypto assets.
The latest FCA CoinBurp warning comes as last month the FCA issued a warning stating that a “significantly high number” of crypto asset businesses were not meeting money laundering standards.
The FCA said in its statement:
“We have warned previously that investing in crypto assets (and investments and lending products linked to them) usually involves very high risks. Crypto tokens can become very difficult to sell or may significantly reduce in value – and consumers that invest in them should be prepared to lose all their money. It is unlikely that you will have recourse to the Financial Ombudsman Service or Financial Services Compensation Scheme if something goes wrong.”
Last year the FCA estimated that its ban restricting the sale of crypto-derivatives was set to save retail investors £53m a year.
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