A lesser-known cryptocurrency and FX broker called KayaFX was just blacklisted by the UK’s financial regulator after the company in question apparently claimed that it operated with an FCA license.
The City watchdog has clarified that the company in question does not, in fact, have any valid license of any kind, stating that KayaFX is not authorized to provide investment services or activities in the country.
KayaFX is the latest company to come under scrutiny by the watchdog. The broker is operating from the site https://kayafx.com, purporting to be registered in UK and Tallinn, Estonia.
This warning is yet another case in which British authorities seem to have stepped up their game and have gone after illegal cryptocurrency brokers. In November 2017, FCA issued a warning for investors in cryptocurrency contracts for difference (CFD), mentioning the risks involved.
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However, the watchdog decided in late December not to regulate the digital asset class, though it stated the decision is not indicative of the approval of investments in the cryptocurrency.
Back to the warning, FCA recommends traders to avoid KayaFX and all other shady brokers at all costs. It also revealed that investors should assume that in case they deposit money at the respective company they might end up losing all their money.
The UK watchdog further added: “You should be aware that if you give money to an unauthorized firm, you will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if things go wrong.”
The FCA again reminds traders who wish to conduct investment activities with an institution or person to beforehand check its official Register as to whether or not such providers are authorized to render financial services.