British Regulator Warns Against Unregistered Crypto Brokers
March 30, 2018
British financial watchdog has issued a note of warning for investors about unregistered broker firms that offer its customers cryptocurrency financial tools.
In the statement published on Thursday the UK’s Financial Conduct Authority cited Olsson Capital registered in Sofia, Bulgaria, as an example.
“This firm is not authorized by us and is targeting people in the U.K. Based upon information we hold, we believe it is carrying on regulated activities which require authorization”, the statement runs.
As Scambroker website studying brokers and dealers says, this company offers cryptocurrency-related trading services while not having the FCA’s license. One of the financial services rendered by Olsson Capital is reported to be contracts for difference of various cryptocurrencies like BTC, ETH, XRP, DASH, XMR and LTC. Top it off investors are asked to deposit $250 to open account. Scambroker notes, withdrawing funds from the site takes several days.
It stands to mention that this was not the first time FCA warned investors against crypto-related risks. Last year the agency claimed, cryptocurrency contracts for difference were speculative and risky investments and pointed out, investors had to be ready for losing all funds put out.