The City watchdog has sounded an alarm over yet another fraudulent clone, but this time is shedding light on a cryptocurrency firm. The FCA said on Friday that a company called ICAP Crypto was impersonating regulated firm ICAP Europe Limited to lure and possibly scam investors.
The FCA warning comes a few months after the authority warned the public against the suspicious operation of Cryptobourse, which has been revealed to be manipulating investors by claiming the reference number of an FCA-regulated called Crypto Facilities Limited.
Although ICAP Crypto doesn’t explicitly claim to be licensed by the FCA, they are in fact using the details of regulated companies in an attempt to convince investors that they work for a genuine firm.
Specifically, ICAP Crypto provides contact details, which the FCA warns may be false or mixed with details of TP ICAP, the world’s largest interdealer broker.
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FCA takes steps towards regulating cryptocurrencies
According to the financial regulator, ICAP Crypto operating from the website www.icapcrypto.com is not authorized to promote financial services in the UK and has no association with the authorized firm. The website of the fake venture offers crypto related services, including ICOs, but apart from the questionable advertisement, its products are lacking any specifics.
The firm assures investors that the service uses “a sophisticated blend of engineering with experience of experience to empower thousands of marketers to access markets around the world through the use of digital currency entirely outside the traditional financial system.”
Earlier in January, the FCA has taken its first steps towards regulating cryptocurrencies as the watchdog began to answer the call for greater oversight of the growing but volatile market.
Specifically, the City regulator launched a comprehensive consultation on how it should authorize all crypto asset activities from the exchanges on which they trade, to payment companies, wallet providers and the brokers seeking to offer related derivatives.