UK Financial Watchdog Warns Against Firm Claiming to be Authorized With FCA

The British financial regulator, the Financial Conduct Authority (FCA), has issued a warning against illegal crypto-related firm Next Coin Market, according to an official statement released on March 6.

According to the FCA, Bulgaria-based Next Coin falsely claims to be authorized with the U.K. financial authority to offer cryptocurrency-related services to British residents.

The FCA elaborated that Next Coin was sending users a link to a fake website that gives the impression that the firm is officially authorized by the FCA. However, Next Coin is not registered with the authority, the FCA said, claiming that the firm is involved in criminal activity.

The financial regulator has asked the public to report cases associated with false claims of being authorized with the FCA. In case money was transferred, the authority advises the public to report concerns to U.K’s national reporting center for fraud and cyber crime, Action Fraud.

The FCA also emphasized that anyone who deals with an unauthorized firm is not protected by the Financial Services Compensation Scheme, and thus cannot complain to the Financial Ombudsman Service, the official U.K. Parliament’s expert in sorting out financial issues.

Recently, Swiss crypto bank Dukascopy warned customers against forex trading company GCG Asia, which fraudulently claimed to represent the bank’s authorized firm.

In early February, the FCA reported that losses from common investment scams — including those crypto-related — amounted totally to more than $255 million in 2018.