21 Jun 2018
Have you heard about crypto broker Cryptorobot365? This entity appears to be listed as one of unauthorized firms that provide investment services in the UK.
21 June, AtoZ Markets – The UK financial supervisor, the Financial Conduct Authority (FCA) has updated its warning list, adding a new name of some unregulated entity. This time, the watchdog has turned its attention to the cryptocurrency market. The name of the firm under the spotlight is Cryptorobot365.
According to the UK regulator, this entity facilitates trading in cryptocurrencies in the UK without any valid authorization to do so. Since it lacks the necessary regulation, the firm is not allowed to provide any investment services or carry out any such activities in the country.
The Financial Conduct Authority has made it clear that the company does not possess any required authorization and, therefore, cannot promote its advertised products in the UK.
Cryptorobot365 comes as the latest entity that has been noticed by the UK financial regulator. The brokerage is operating online via https://cryptorobot365.com. According to the FCA, the firm is claiming to be registered in undisclosed jurisdictions.
The FCA has recommended that traders should avoid dealing with Cryptorobot365 and other suspicious brokers. It has also stated that investors should assume that in case they invest their money with an unregistered broker, they risk losing all of them, The UK supervisor has further stated:
“You should be aware that if you give money to an unauthorized firm, you will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if things go wrong.”
This warning comes as a sign that the UK authorities have increased their scrutiny and have gone after illegal cryptocurrency firms. Back in November 2017, the FCA has issued a warning in relation to the cryptocurrency contracts for difference (CFDs).
Then, in December, the UK FCA has decided not to regulate digital assets. At that time, the regulator has also mentioned that this decision does not indicate the approval of investments in the cryptocurrency.
The FCA has also reminded traders that look to conduct investment activities with an entity or an individual to check the official Register of the regulator as to whether the particular firm is authorized to operate in the market.
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