British Financial Watchdog Issues Warning Against Unregistered Crypto Firms

Reading Time: < 1 minute

The Financial Conduct Authority (FCA), the UK’s financial regulator, has issued a warning against 11 cryptocurrency companies which are operating in the country without the necessary license.

According to the FCA, these firms have not applied for a license, meaning that they are offering their services illegally. As a result, customers dealing with them are not protected.

Remember that the UK implemented a new law on January 10 according to which all crypto-related firms must comply with AML and Counter-Terrorist Financing laws and to register with the FCA. However, there are still a lot of companies that have not done it yet.

Now, the regulator has issued a warning against 11 of such companies, stating that customers, including payment companies and banks, using their services are not covered by any legal protection.

In order to help users know whether the company whose services they plan to use is legally registered, the FCA has published a list that includes more than 100 cryptocurrency companies that have not formalized their registration, and as a result, are operating illegally.