FCA Blacklists Forexbit in Latest Flurry Against FX Brokers

Britain’s financial regulator has continued its ongoing efforts to warn the general public against fraudulent and unauthorized entities. The City watchdog today warned against a provider of online trading products called Forexbit.

Today's announcement is the latest in the FCA’s series of warnings about unregulated firms posing ‎as legitimate, approved businesses to con UK consumers into making Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term for ‎investment services.‎

Forexbit is targeting UK investors offering a full range of offshore investment services, including FX trading services, but the City watchdog stressed the registration claims on its website is a fake and the firm is not authorized to do business in the UK.

Britain’s Financial Conduct Authority, or FCA, keeps a closer eye on firms selling high-risk and speculative investments to retail clients following recent actions by its European peer to supervise sales of contracts for difference (CFDs).

Measures to restrict the marketing CFDs to retail clients, which mainly applies to regulated providers, were put forward by the European Securities and Markets Authority (ESMA) back in 2018.

FCA still concerned about crypto

The FCA was also concerned that firms might consider getting around ESMA’s measures through their overseas brands or by selling other similarly complex or highly-leveraged products. The City watchdog said, in common with other European regulators, it was aware that other products could create the same kinds of risks to consumers as CFDs.

Most recently, the FCA has also warned investors are turning to Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term to “get rich quick” despite not understanding what they are purchasing. Many of those interviewed perceived crypto assets as a shortcut to easy money and wealth while they overestimated their knowledge of virtual asset class. For example, many crypto enthusiasts said they wish to buy a whole Bitcoin, not realizing they could buy just part of one.

Earlier in January, the Financial Conduct Authority also highlighted its concerns over financial promotions that falsely implied that all of a firm’s activities were regulated by the FCA or other regulators, when in fact they were not.