blockchain

Financial Conduct Authority Issues warning on “clone” companies in the UK

The United Kingdom financial regulator FCA has issued a warning to investors about clone firms of that operate under the guise they are registered by the FCA, and use a name similar to that of a legitimate firm such as investment firm Fair Oaks Capital Ltd.

FINANCIAL SERVICES IN THE U.K MUST BE AUTHORIZED

The FCA registers all financial firms providing services to consumers in the UK. The FCA issued a statement where it outlined a company that was targeting citizens in the UK using the data of firms authorized by the regulator. Fair Oaks Crypto targets victims by falsely claiming to represent Fair Oaks Capital, which happens to be a financial firm registered with the FCA.

The FCA has provided the details of the clone firm to the public to raise awareness and avoid such frauds. The regulatory authority also informed the public and investors that they should regularly check the Financial Services Register before transacting with any firm.

POSITIVE REGULATORY APPROACH

The FCA has taken a positive regulatory approach towards cryptocurrencies. It recently announced the creation of a global initiative called Global Financial Innovation Network (GFIN). The aim of GFIN is enhance collaboration between regulators and companies. GFIN will also consult of some topics such as Initial Coin Offerings (ICO).

The FCA recently launched a crypto task force in collaboration with the Bank of England.  The main objective of the task force is to look at ways in which cryptocurrencies can be regulated and explored.

UK TO BECOME A LEADER IN THE CRYPTO SPACE

Deep Knowledge Analytics and Big Innovation Centre last month released a report which showed that the UK had the resources of becoming a major leader in the crypto space in the next few years. The chief executive of DAG Global, Sean Kiernan believes the UK is strongly positioned to lead in the blockchain and cryptocurrency space:

“The UK is a major global financial hub and in recent years has become a fintech leader as well. At the same time, it is starting to demonstrate significant potential to become a leader in blockchain technologies and the crypto economy,”

The study further explored the development of blockchain technology in the country and found it to be in its earlier stages.

Remember folks, Crypto is comin!

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