A financial Watchdog Based In UK Has Warned Over Unregistered Crypto Brokerage
Financial Conduct Authority
The UK based financial regulator has been involved in issuing a warning to the investors over one of the unregistered firms. This firm offers cryptocurrency related derivatives in the UK.
On Thursday, the Financial Conduct Authority on Thursday aimed at the Olsson Capital Firm which, in accordance with the regulator, has its base in Sofia, Bulgaria.
The agency noted;
“This firm is not authorized by us and is targeting people in the U.K. Based on the information we hold; we believe it is carrying on regulated activities which require authorization.”
According to the current information, the firm’s website is not accessible. However, according to the information in ScamBroker which is a website dealing with the analysis and scrutiny of the securities dealers and brokers, it shows that the firm has been involved in cryptocurrency related trading services. Additionally, this firm is not registered as a licensed broker with the FCA.
ScamBroker further analyses the contents of the services which Olsson Capital offers and these include the Contract for Difference (CFD) trading on the various cryptocurrencies which are, Ethereum, Bitcoin, XRP, Litecoin, and Monero. Additionally, new investors are required to make a deposit of $250 before they can create an account. This is according to ScamBroker.
Currently, Olsson has not yet made responses to the CoinDesk inquiries. The various comments found on ScamBroker claim that the withdrawal requests made have not been made up to now.
This notice has, however, come about just as a continuation of the FCAs efforts in exerting caution on the public. They are involved in this activity to keep the public from trading in the cryptocurrency-related derivatives due to the fact that those activities are under the agency’s jurisdiction.
As CoinDesk reported, the regulator was involved in issuing a warning in 2017 November and made the specific focus on the risks which are associated with the cryptocurrency CFDs.
Additionally, early last year, an FCA official announced that the public should be involved in exercising caution when it comes to such products in the cryptocurrency market.