The FCA has warned against crypto exchange Bitmex which claims to be an authorized business but defrauds potential victims in the UK. Is Bitmex scam or reliable?
04 March, 2020 | AtoZ Markets – Some companies act without the Financial Conduct Authority (FCA) authorization and others knowingly carry out investment scams. The scammers give false details or change their contact details over time to new email addresses, phone numbers or physical addresses. Almost all financial companies and individuals who offer, promote services or products in the UK must obtain a license from FCA.
Is the Bitmex Scam or Reliable?
FCA issued a warning against Crypto Exchange Bitmex for offering services in the UK. According to the Regulator, Bitmex offers financial products and investment opportunities in the country. However, it is not allowed to provide such services in the UK without having obtained a license from the regulatory authority. According to the FCA, Bitmex is operating under the following details:
- Email: email@example.com, firstname.lastname@example.org
- Website: www.bitmex.com
“We believe this company has provided financial services or products to the UK without our permission,” said FCA. UK regulator has also clarified that Bitmex concludes such services that require authorization. It said:
“This business is not licensed by us and is targeting people in the UK. Based on the information we have; we also believe it engages in regulated activities that require licensing”.
FCA Also Warns Against Kraken
UK FCA has warned the Kraken about its business activities in the country. The regulator also said they are not allowed to operate in the UK.
However, the Kraken is one of the leading exchanges and has existed since 2011. Based in San Francisco, Kraken is one of the oldest active crypto exchanges, offering trading services with many digital currencies. However, the FCA likened the Kraken to “scammers” in its announcement.
According to the Kraken, FCA has listed the details of the scammers falsely using its brand. But, it has requested clarification from the regulatory authority.
FCA also warns investors, “We strongly advise you to deal only with financial companies that we have authorized and to check in the financial services register that they are. It also contains information on companies and people who are or have been, regulated by us. “
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