The Financial Conduct Authority (FCA) has issued a warning against VEXTRON Trading Platform for allegedly providing financial and cryptocurrency services without the necessary authorization. The FCA highlighted that this firm, which lacks authorization, may be targeting individuals in the United Kingdom. Those engaging with this firm will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if issues arise. The FCA advises individuals to work only with authorized firms for better protection and recommends using its Firm Checker tool to verify a firm's authorization status.
According to the FCA, UK cryptoasset businesses must register under the Money Laundering Regulations if they intend to offer services falling within those rules. This requirement applies even to firms already authorized for other financial services. Registration involves submitting an application through the FCA's Connect system, paying applicable fees, and providing detailed information about the business, its activities, and key individuals. All officers, managers, and beneficial owners must pass a "fit and proper" assessment. The FCA evaluates past convictions, regulatory compliance, and business conduct during this process. Pre-application meetings are optional but can help clarify requirements. Misleading or incomplete applications may be rejected.
In a press release by the FCA, CB Payments Limited (CBPL), part of the Coinbase Group, was fined £3.5 million for allowing 13,416 high-risk customers to access crypto trading through other Coinbase entities despite restrictions. This resulted in $226 million in transactions. The FCA cited inadequate controls as contributing factors that increased money laundering risks. This enforcement action marks the first under the Electronic Money Regulations 2011.
Learn Signal reports that the Financial Conduct Authority (FCA) was established on April 1, 2013, succeeding the Financial Services Authority (FSA) as part of a comprehensive reform of the UK's financial regulatory framework following the global financial crisis. Operating independently of the UK government, it is funded by fees charged to the financial services industry. Its primary objectives include protecting consumers, ensuring market integrity in the UK’s financial markets, and promoting effective competition in consumers' interests.
