7 months ago

The Financial Conduct Authority  (FCA) issued a warning to investors on August 17 stating that scammers could use images of celebrities, attractive website desogn and prestigious or fancy London addresses to attract investors – and these are all red flags:

Fraudulent firms can manipulate software to distort prices and return on investment. They can force to the purchase of non-existent cryptocurrency. They are also known for the fact that they can suddenly close online customer accounts, refuse to transfer funds or request money for transferring funds“.

The FCA also recalls that at the moment they only regulate crypto derivatives, and the currencies themselves are not regulated yet, so the watchdog recommends double checking with resources such as ScamSmart.

This month, the regulator has already issued 2 warnings about companies that illegally claimed they had had FCA license in the absence of such. Also in June, FCA issued a directive for banks on how to deal with risks related to cryptocurrencies.