The Financial Conduct Authority (FCA), the UK’s foremost financial watchdog, updated its warning list containing unregulated companies on Monday. With more than 20 new listings, the FCA flagged entities such as Elite Crypto Exchange, Cryptoslite, Market by Crypto Trade, and BCryptoFX.
FCA’s updated warning list cautions against new businesses
This caution emphasises that the FCA has not authorised or registered the listed entities and, in conducting business with or through them, customers may be at financial risk. On its website, the FCA reminds businesses and consumers alike that operating without this regulatory body’s consent is unlawful in the UK.
The organisation also draws attention to the fact that one cannot be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if engaging with an unauthorised firm.
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Stepping up its warning cycles, these new listings came in on the back of 27 other warnings about unauthorised and cloned firms published on 4 August 2023. This action seems to be in sync with the institution’s consumer-duty initiative, which came into effect on 31 July 2023.
In terms of these new rules, the FCA embarks on a mission to ensure customers receive better and fair treatment when applying for financial products. Typed as one of the largest reforms of consumer finance in the UK, everything from building societies and insurers to investment firms is under the microscope.
From a trading perspective, frequent regulatory reviews and inspections are great news when entrusting complex dealings to a platform. A glimpse at the warning list can help curb financial risks.
