UK Regulator Warns Against Crypto Investment Firm

Yessi Bello Perez
Oct 14, 2015 at 18:10 UTC
Updated Oct 15, 2015 at 14:10 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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