The Financial Conduct Authority (FCA) has issued a warning regarding CapitalAsset, a firm allegedly offering financial and crypto-related services without proper authorization.
According to the FCA, CapitalAsset may be providing financial services without FCA authorization and could be targeting UK consumers. The FCA emphasizes that nearly all financial service providers must be authorized or registered by the authority to operate in the UK. Consumers are advised to avoid this firm and consult the FCA Warning List for other unauthorized entities. "If you deal with this firm, you will not have access to the Financial Ombudsman Service or protection from the Financial Services Compensation Scheme," SAY the FCA.
UK cryptoasset businesses are required to register with the FCA under the Money Laundering Regulations if they plan to offer services within those rules. This includes 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 considers past convictions, regulatory compliance, and business conduct during evaluation. Misleading or incomplete applications may be rejected, according to the authority.
In a recent 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 a restriction. 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 was established on April 1, 2013, succeeding the Financial Services Authority as part of comprehensive reforms 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 UK's financial markets, and promoting effective competition in consumers' interests.
