UK Financial Conduct Authority Issues Warning Against Unregistered Crypto Brokerage

The UK Financial Conduct Authority (FCA) has issued a statement warning UK citizens about an unregistered brokerage dealer that was allegedly offering cryptocurrency derivative products.

The FCA warned that a firm called Olsson Capital, which operates as a contracts for difference (CFD), forex, and crypto brokerage, is not authorized by agency and is targeting investors in the UK. Olsson Capital was said to offer products tethered to a number of cryptocurrencies including bitcoin, Dash, ethereum and Litecoin.

“Based upon information we hold, we believe it is carrying on regulated activities which require authorization,” the FCA said. “Almost all firms and individuals offering, promoting or selling financial services or products in the UK have to be authorized by us.”

The regulator located the unauthorized firm via its website,‎, which lists several contact details including a UK phone number. Olsson Capital’s address is allegedly based out of‎ Bulgaria, located at Carter Enterprises OU, 85 James Bouchier Blvd., Sofia.

“We strongly advise you to only deal with financial firms that are authorized by us, and check the Financial Services Register to ensure they are,” the FCA said. “You should also 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 notice is the latest in a series of warnings from the FCA regarding trading in crypto-related derivatives. In November 2017, the FCA warned investors about the risks in cryptocurrency CFDs and listed four concerns about the product, including price volatility, leverage, charges and funding costs, and price transparency.

Source: Read Full Article

Leave a Reply