The regulator of the UK financial markets, FCA, has issued a warning against the cryptocurrency broker BCG Wealth Group. What do we know about the company?
25 July, AtoZ Markets – Britain’s financial markets regulator, the Financial Conduct Authority (FCA), has issued a warning for investors on its website. The authority has cautioned the investors’ community against dealing with the company called BCG Wealth Group.
FCA UK Cryptocurrency Broker BCG Wealth Group Warning Details
FCA has been issuing warnings for the public against dealing with unregulated brokers as a part of its responsibilities to oversee the market and protect investors in the UK. Such brokerages might have licenses in some other jurisdictions, but in order to be able to carry out business in the UK, they would need to obtain a license from the FCA.
It is understood that BCG Wealth Group has offices in Copenhagen and London, according to the information displayed on its website. However, it is not certain that the company has the offices there, since unregulated brokers usually claim to have offices in some countries, but do not actually have any physical presence in them.
BCG Group is a brokerage that focuses its efforts on cryptocurrency trading. The website of the broker indicated that it provides wealth management services for investment in digital currencies. The company also claims that its staff has more than a hundred years in combined experience. However, this claim can not be confirmed since the company does not provide any further details about its employees.
In addition, the firm claims that its methods are popular among a variety of institutional investors, such as family offices, fund managers, and pension funds. Yet, considering the infancy of the cryptocurrency market, this claim is hard to believe as well.
FCA Trade WFX Warning
One of the latest warnings from the FCA has featured a brokerage that calls itself Trade WFX. Reportedly, the firm is falsely claiming the authorization with the regulator.
It is also known that Trade WFX has been targeting the UK investors, offering them a full range of offshore investment services. This includes Forex trading services, as per the FCA’s announcement. However, the company has faked its registration number, as it has no authority to do business in the UK, according to the UK City watchdog.
Following on this, the UK FCA has stated that many of such firms are acting in a capacity that would require them to have a valid registration with the FCA. The registration enables the agency to offer better security and oversight of the financial markets by analyzing whether firms are eligible to deal in financial instruments.
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