FCA Flags Another Clone Firm within Two Weeks

The regulatory body keeps an eye on scamming companies which claim to be working under its permit, with an intention of toughening the compliance rules even more.

November 16, 2018 AtoZ MarketsThe Financial Conduct Authority in the UK has triggered an alarm, warning about a fraudulent company, which claimed to be another one working under the FCA permit.

In the details, the FCA announced on Thursday, 15th November, that a company named GMT Crypto was impersonating the regulated firm GMT Communications Partners LLP, in pursue to lure investors for dealing with it, and possibly scamming them.

The warning FCA issued is the second within a two-weeks period, where the British watchdog warned about a clone company, pretending to be one of which the FCA gives its authorization.

Tougher restrictions with an intention of a complete ban on cryptos

In its warning, the financial regulator pointed to the firm Cryptobourse, which forged details to look as the FCA-authorized company Crypto Facilities Limited.

In its latest warning, the financial regulator says that GMT Crypto, which uses the website gmt-crypto.com, is not permitted to promote financial services in the UK and has no association with the FCA-authorized firm. The company, which is located at 27 Old Gloucester Street London, offers through its fake website, crypto trading procedures, along with products that were described as “lacking any specifics”.

The flagged firm assures investors that its services use “a sophisticated blend of engineering with experience of experience to empower thousands of marketers to access markets around the world through the use of digital currency entirely outside the traditional financial system”.

In a similar context, the FCA was reportedly considering a complete ban on the sale of crypto-CFDs to retail investors, excluding the “cryptoassets that qualify as securities.”, however, CFDs on cryptos as a case, is subject to ESMA’s restrictions on cryptocurrency CFDs, including lowering the maximum benefit companies can offer.

In a connected news, the British watchdog has stated today that accuracy of data displayed about individuals is a main priority on its register. The statement came on the tongue of its chief executive Andrew Bailey.

The regulator reportedly intends to introduce “new reporting rules” towards tougher regulatory actions against those firms which do not comply with the rules.

Share Your Opinion, Write a Comment