Companies listing via ICO and providing services that are normally regulated will be specifically targeted.
Bloomberg
The UK’s Financial Conduct Authority (FCA) has just warned investors against the speculative risks inherent with initial coin offerings (ICOs). The announcement comes less than a week after the regulator promised to maintain close scrutiny on ICOs, amidst industry growth in token-based fundraising activities.
The FCA said: "Businesses involved in an ICO should carefully consider if their activities could mean they are arranging, dealing or advising on regulated financial investments.
Each promoter needs to consider whether their activities amount to regulated activities under the relevant law. In addition, digital currency exchanges that facilitate the exchange of certain tokens should consider if they need to be authorised by the FCA to be able to deliver their services."
The announcement is noteworthy as it reflects a more concrete stance from one of the industry’s paramount regulatory authorities. Authorities in China and elsewhere have gone even further, banning ICOs outright in a bid to rein in token crowd sale efforts.
‘High risk’ ventures
Earlier this year, the FCA issued a discussion paper outlining its concerns over the risks posed by Cryptocurrencies on market integrity, consumer protection, competition and risk management measures. The regulator also noted that it may separately regulate some aspects of Blockchain technology that fall outside existing financial services rules.
While a relatively new funding mechanism, ICOs have become all the rage across the industry as businesses look to fund their respective ventures. Typically, ICO issuers accept popular cryptocurrencies such as Bitcoin or Ethereum in exchange for a proprietary ‘coin’ or ‘token’ that is dedicated to a specific firm or project.
Most common is a promise and pledge to acquire a small share of the firm conducting the ICO – in many cases this takes the form of a prepayment voucher for future services, or in some cases offers no discernible value at all. The FCA views this practice as highly speculative, carrying exorbitant levels of risk for investors.
Consequently, the regulator cautions investors against engaging in ICO or token sales given the aforementioned risks. It says that only experienced investors that are familiar with a given project should engage.
Most critically, the vast majority of ICOs are not regulated by the FCA or any other regulatory authority. This blind spot creates the potential for abuse and fraudulent activity given that these sales operate outside the influence of authorities. There is very limited investor protection in the UK relating to them, meaning that you are likely not entitled to protections under the Financial Services Compensation Scheme (FSCS).
The prospect of high price volatility is also problematic, and can result in the loss of your entire investment. Coupled with this is vulnerability for fraud. While ICO white papers outline the conditions of token sales, the probability of misleading or outright false statements remains extremely high and should not be relied upon via unregulated groups.
The UK’s Financial Conduct Authority (FCA) has just warned investors against the speculative risks inherent with initial coin offerings (ICOs). The announcement comes less than a week after the regulator promised to maintain close scrutiny on ICOs, amidst industry growth in token-based fundraising activities.
The FCA said: "Businesses involved in an ICO should carefully consider if their activities could mean they are arranging, dealing or advising on regulated financial investments.
Each promoter needs to consider whether their activities amount to regulated activities under the relevant law. In addition, digital currency exchanges that facilitate the exchange of certain tokens should consider if they need to be authorised by the FCA to be able to deliver their services."
The announcement is noteworthy as it reflects a more concrete stance from one of the industry’s paramount regulatory authorities. Authorities in China and elsewhere have gone even further, banning ICOs outright in a bid to rein in token crowd sale efforts.
‘High risk’ ventures
Earlier this year, the FCA issued a discussion paper outlining its concerns over the risks posed by Cryptocurrencies on market integrity, consumer protection, competition and risk management measures. The regulator also noted that it may separately regulate some aspects of Blockchain technology that fall outside existing financial services rules.
While a relatively new funding mechanism, ICOs have become all the rage across the industry as businesses look to fund their respective ventures. Typically, ICO issuers accept popular cryptocurrencies such as Bitcoin or Ethereum in exchange for a proprietary ‘coin’ or ‘token’ that is dedicated to a specific firm or project.
Most common is a promise and pledge to acquire a small share of the firm conducting the ICO – in many cases this takes the form of a prepayment voucher for future services, or in some cases offers no discernible value at all. The FCA views this practice as highly speculative, carrying exorbitant levels of risk for investors.
Consequently, the regulator cautions investors against engaging in ICO or token sales given the aforementioned risks. It says that only experienced investors that are familiar with a given project should engage.
Most critically, the vast majority of ICOs are not regulated by the FCA or any other regulatory authority. This blind spot creates the potential for abuse and fraudulent activity given that these sales operate outside the influence of authorities. There is very limited investor protection in the UK relating to them, meaning that you are likely not entitled to protections under the Financial Services Compensation Scheme (FSCS).
The prospect of high price volatility is also problematic, and can result in the loss of your entire investment. Coupled with this is vulnerability for fraud. While ICO white papers outline the conditions of token sales, the probability of misleading or outright false statements remains extremely high and should not be relied upon via unregulated groups.
Coinbase Asks Courts to Bar States From Regulating Prediction Markets
How FYNXT is Transforming Brokerages with Modular Tech | Executive Interview with Stephen Miles
How FYNXT is Transforming Brokerages with Modular Tech | Executive Interview with Stephen Miles
Join us for an exclusive interview with Stephen Miles, Chief Revenue Officer at FYNXT, recorded live at FMLS:25. In this conversation, Stephen breaks down how modular brokerage technology is driving growth, retention, and efficiency across the brokerage industry.
Learn how FYNXT's unified yet modular platform is giving brokers a competitive edge—powering faster onboarding, increased trading volumes, and dramatically improved IB performance.
🔑 What You'll Learn in This Video:
- The biggest challenges brokerages face going into 2026
- Why FYNXT’s modular platform is outperforming in-house builds
- How automation is transforming IB channels
- The real ROI: 11x LTV increases and reduced acquisition costs
👉 Don’t forget to like, comment, and subscribe.
#FYNXT #StephenMiles #FMLS2025 #BrokerageTechnology #ModularTech #FintechInterview #DigitalTransformation #FinancialMarkets #CROInterview #FintechInnovation #TradingTechnology #IndependentBrokers #FinanceLeaders
Join us for an exclusive interview with Stephen Miles, Chief Revenue Officer at FYNXT, recorded live at FMLS:25. In this conversation, Stephen breaks down how modular brokerage technology is driving growth, retention, and efficiency across the brokerage industry.
Learn how FYNXT's unified yet modular platform is giving brokers a competitive edge—powering faster onboarding, increased trading volumes, and dramatically improved IB performance.
🔑 What You'll Learn in This Video:
- The biggest challenges brokerages face going into 2026
- Why FYNXT’s modular platform is outperforming in-house builds
- How automation is transforming IB channels
- The real ROI: 11x LTV increases and reduced acquisition costs
👉 Don’t forget to like, comment, and subscribe.
#FYNXT #StephenMiles #FMLS2025 #BrokerageTechnology #ModularTech #FintechInterview #DigitalTransformation #FinancialMarkets #CROInterview #FintechInnovation #TradingTechnology #IndependentBrokers #FinanceLeaders
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
