The Financial Conduct Authority (FCA) recently added a crypto exchange company, Bitcoin Evolution, to its warning list. According to the U.K. regulator, residents should be cautious of the platform, as is not authorized by the FCA to operate in the country.
Bitcoin Evolution Operating Illegally in the U.K
The FCA issued the warning via its official website on Monday, March 17, 2020, stating that Bitcoin Evolution was conducting financial services in the U.K. illegally. Part of the announcement said:
“This firm is not authorized by us and is targeting people in the UK. Based upon information we hold, we believe it is carrying on regulated activities which require authorization.”
There have also been similar warnings in recent times by the U.K financial watchdog about unlicensed crypto exchange platforms. As previously reported by BTCManager earlier in March, the FCA declared that Kraken, a U.S.-based digital currency exchange platform, was operating without authorization in the country.
However, details provided U.K. regulatory for the exchange were incorrect, indicating possible signs of impersonation. Kraken founder Jesse Powell, also said the FCA made an error, stating that the crypto exchange platform had full authorization from the regulatory agency.
Another virtual currency exchange firm, BitMEX, also came under the FCA’s radar. According to the financial regulator, BitMex had no license to offer financial services in the U.K., asking investors to be wary of the platform.
In its latest warning, the FCA stated that businesses and individuals who intend to sell, provide, or promote financial products and services in the U.K. must get authorization from the FCA. Furthermore, the FCA asked residents to visit the Financial Services Register to check for crypto platforms permitted by the financial regulator.
FCA Relentless in Crypto Industry Scrutiny
The FCA has continued to monitor cryptocurrency businesses in the U.K. in a bid to weed out fraudulent virtual currency schemes. Crypto exchanges in the country came under intense scrutiny back in October 2019, when the U.K. regulatory body decided to increase the number of digital currency platforms under investigation.
Also, the financial regulator planned to place a ban on crypto derivatives trading, with stakeholders in the industry asking the FCA to reconsider its decision. The U.K. government came out to state regulatory watchdog had the right to make a decision to ban crypto derivatives in the country.
Back in February 2020, the FCA published new rules for virtual currency businesses, which touched on revised registration fees for crypto platforms willing to conduct financial services in the U.K.
The regulatory body also released its final crypto regulatory guidelines, which provided clarity on blockchain-based cryptocurrencies that were under the scope of the FCA.
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