UK Financial Conduct Authority Warns Consumers Against Unauthorized Crypto Exchange

News, Regulation | November 20, 2018 By:

The UK Financial Conduct Authority (FCA) has issued a warning against an unregulated crypto exchange targeting UK consumers.

In a notice published on Monday, the FCA said that Crypto Exchange Pro, which offers trading accounts for buying and selling major cryptocurrencies, has been providing financial services in the UK without the regulator’s authorization.

“This firm is not authorized by us and is targeting people in the UK,” the FCA said. “Based upon information we hold, we believe it is carrying on regulated activities which require authorization.

Crypto Exchange Pro has listed its address at No 1. Royal Exchange Avenue, London, EC3V 3LT, but the FCA said it does not appear on the FCA Register. The regulator warned crypto traders to be wary of being contacted by the following email addresses: info@cryptoexchangepro.com; davidthompson@cryptoexchangepro.com; accounts@cryptoexchangepro.com; williamrichardson@cryptoexchangepro.com and jordanballet@cryptoexchangepro.com.

“We strongly advise you to only deal with financial firms that are authorized by us, and check the Financial Services Register to ensure they are,” the FCA said. “It has information on firms and individuals that are, or have been, regulated by us.”

At present, cryptocurrencies are not regulated in the UK. So the transfer, purchase and sale of cryptocurrencies, including the operation of a crypto exchange, all fall outside the regulatory remit of the FCA. However, firms that sell regulated investments with an underlying cryptocurrency element may need to be authorized by the agency.