According to the FCA UK Cryptocurrency broker KayaFX warning, the entity does not hold any FCA-issued license or any other kind of license. The FCA has also added that KayaFX has no authority to provide investment services or activities in the country.
30 March, AtoZForex – The UK financial markets regulator, the Financial Conduct Authority (FCA) has yet another time warned investors’ community to stay away from the unregistered brokerages that target UK-based clients. According to the latest FCA warning, the cryptocurrency and Forex broker KayaFX has claimed to hold an FCA license.
FCA UK Cryptocurrency Broker KayaFX Warning Details
The City regulator has also mentioned that the company in question does not hold any FCA-issued license or any other kind of license. The FCA has also added that KayaFX has no authority to provide investment services or activities in the country.
KayaFX is the latest broker to come under scrutiny of the regulator. The entity is operating online via the website https://kayafx.com, and purporting to be registered in UK and Tallinn, Estonia.
The warning comes as another case where the UK officials have gone after the cryptocurrency brokers, as a part of the initiative to combat cryptocurrency-related fraud. Yet, the watchdog has made the decision not to regulate the digital assets back in December 2017. In November 2017, the FCA has issued a warning for investors that are interested in cryptocurrency contracts for difference (CFD), highlighting the risks involved.
Investors need to check FCA Register
Coming back to the latest FCA warning, the regulator noted that traders are recommended to avoid KayaFX along with all other suspicious brokers. The regulator has also stated that investors should know that in case they decide to invest money with such companies, they might lose all their funds. The statement reads:
“You should be aware that if you give money to an unauthorized firm, you will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if things go wrong.”
The watchdog took a chance to remind traders to check its official Register to understand whether a certain company holds any license and has the authorization to operate in the market.
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