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UK Regulator Warns Against Crypto Investment Firm

The Financial Conduct Authority (FCA) has issued a public warning against Cryptoconomist Limited, a crypto investment firm.

By Yessi Bello Perez
AccessTimeIconOct 14, 2015 at 5:10 p.m. UTC
Updated Sep 11, 2021 at 11:56 a.m. UTC
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The Financial Conduct Authority (FCA) has issued a public warning against an investment firm promising high returns on cryptocurrency trading.

The UK regulator – which oversees more than 70,000 businesses in the financial industry – issued a public warning against Cryptoconomist Limited, registered to a London address, on its website earlier today.

In the warning

, the FCA said it believed the trading website had been providing "financial services or products in the UK" without its authorisation. "Almost all firms and individuals offering, promoting or selling financial services or products in the UK have to be authorised by us," it explained.

When checking the Financial Services Register – a list of companies and individuals regulated by the FCA – CoinDesk found that Cryptoconomist Limited was listed as "unauthorised".

The search result brought up the following message:

"This is a firm that we have been told is either operating regulated activities without the correct authorisation, or is running a scam. We strongly suggest you avoid dealing with unauthorised firms like this."

According to its website

, Cryptoconomist, allegedly in-market since 2013, offers traders the opportunity to "earn a good surplus" on their cryptocurrency investment through a referral program which promises payouts of 4% and 1.5% for first line and second line referrals respectively.

A due diligence check lists Eller Otte as the company's director and secretary. Otte has no other apparent previous employment history online.

CoinDesk reached out to Cryptoconomist for comment but no reply had been received at press time.

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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

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