On the 28th of September 2020, the Financial Conduct Authority, FCA, took to its website to warn about Cryptenix. Cryptenix is a cryptocurrency trading platform based in the UK. As per the FCA, there is a lot of information showing that Cryptenix is carrying on regulated financial activities; their main target is individuals within the United Kingdom. Therefore, it requires FCA’s authorization because it is yet to get approved.
FCA, therefore, strongly advises people against engaging themselves with Cryptenix. The financial conduct authority also outlined that almost all firms and individuals giving out, promoting, or selling financial services or products in the UK should register with them. This UK monetary authority made it known that some financial firms act without their authorization to run investment scams; hence people should be cautious.
FCA Gives Out Cryptenix Contact Information for Public Awareness
In its call to provide public awareness, the FCA felt it is safe to give out the right contact information about Cryptenix. The financial conduct authority outlined Cryptnix’s address, telephone, email, and website in its public release. FCA also warned the public to be vigilant with all unauthorized financial firms, since scammers may change their contact details over time.
In its official website, Cryptenix identifies itself as a Bitcoin-based platform, providing leveraged trading on various virtual assets, including Bitcoin, Ethereum, Ripple, and Litecoin. The financial company launched in 2018 and serves clients in more than 150 countries, as per its website. Cryptenix also claims to offer its users access to top-tier liquidity and various trading tools; it states that it is a company for currency and stock trading, owned and operated by Finplex Group. This financial firm also promises its clients to maintain their security and enhance their trading environment to be safe and efficient for everyone.
How UK Residents Can Protect Themselves Against Unauthorized Financial Firms
FCA encouraged UK residents to engage only with the financial firms that are authorized by them. The UK financial authority also went ahead and gave ways to ensure and confirm if the UK based cryptocurrency trading platform you are using has registered with them. According to FCA, you only need to check its Financial Services Register to ensure the financial platform you are using got approved.
This Financial Services Register lists all the financial firms and currently or previously approved individuals, providing specific regulated activities. You can also find out what the financial firm got approved to offer and your protection when doing business with them in the register. It is also sensible to check whether the firm’s permissions or activities match the service it offers to you as a client.
Many scammers pretend to be authentic firms by giving the wrong contact information. Therefore, it is advisable to use the Financial Services Register’s contact details to confirm you are dealing with a genuine firm before doing business with them. If you want to know if a crypto trading platform has a fraud record, go to the FCA’s complaint list, and you’ll get information on such firms. However, if you do not get the firm in the complaint list, it is not a guarantee that it is legitimate; people may not have reported it yet. The FCA also provides a video guide to watch and learn how to use their financial services register.
The Downside of the UK Residents using Cryptenix
The UK residents using Cryptenix will not have access to the Financial Ombudsman Service or Financial Services Compensation Scheme. Financial Ombudsman Service is a free and effortless platform found in the UK. The financial platform settles complaints between consumers and firms that offer financial services. This financial service also resolves disagreements fairly and impartially, and they even have the mandate to put things right.
On the other hand, the Financial Services Compensation Scheme is an independent and free service available in the UK. The UK government established the FSCS; the financial services industry is responsible for its funding. This compensation scheme protects UK residents when financial firms collapse by ensuring they get all the compensation they need. The people using Cryptenix for cryptocurrency investment will most likely lose their money if something wrong happens to the firm.
The FCA advised any British citizen approached by Cryptenix to contact this financial authority immediately. The UK-based monetary leader also urged anyone who transferred funds to Cryptenix to report the incident to their Action Fraud.
Warning Comes Weeks After UK Government Considers Restricting Crypto-based Promotions
The warning against Cryptenix came a few weeks after the UK government considered restricting cryptocurrency-based promotions in July 2020. The restriction should protect investors against misinformation on cryptocurrencies. It should also lower the levels of misleading and sketchy advertisements that threaten retail crypto investors’ success.
John Glen, the Economic Secretary to the Treasury & City minister, cited concerns regarding the protection of cryptocurrency investors. Glen highlighted that even the firms selling regulated investments with an underlying digital assets element might need authorization from the FCA to operate.
According to Glen, the UK’s government earlier efforts in regulations failed to bring the necessity for new opinions and options. John expects the proposals forwarded helps put all virtual assets at the same level; to prevent any manipulation of cryptocurrency information. However, execution of the propositions is not yet underway; since the consultations are still ongoing until October this year.