The Financial Conduct Authority (FCA), the UK’s financial regulator, has issued an urgent warning regarding Digital Assets Nest, a cryptocurrency investment firm.
The Financial Conduct Authority (FCA) warns that this company is promoting financial services without obtaining an appropriate license, which poses significant risks to investors.
FCA Marks Digital Assets Nest as Unauthorized Cryptocurrency Firm
In its warning about Digital Assets Nest, the Financial Conduct Authority (FCA) advised against dealing with this company to avoid potential fraud. The agency stated that dealing with such companies could lead to huge financial losses.
According to the rule Companies and individuals must In the United Kingdom Get FCA approval To provide or promote financial services. The FCA encourages investors and traders to deal with qualified firms to protect their investments and obtain better protection in the event of problems.
Read more: The Status of Encryption Regulation in the UK
“If you deal with this company, you won’t have access to the Financial Ombudsman Service if you have a complaint. You’re also not protected by the Financial Services Compensation Scheme (FSCS) if things go wrong. This means you’re unlikely to get your money back if the company goes bust. to caution The office.
According to Information On the website, Digital Assets Nest is a London-based cryptocurrency investment firm that provides top-notch investment services to investors, both individual and corporate.
BeInCrypto previously reported that the Financial Conduct Authority (FCA) implemented a new rule in October 2023. The rule requires Encryption companies guarantee their marketing. “Clear, fair and not misleading”. In addition, companies must provide clear warnings about the risks to British consumers.
According to the Financial Regulatory Authority Comply However, some cryptocurrency companies, including KuCoin and HTX (Huobi. Not for new rules. As a result, the Authority has placed it on its list of “unlicensed companies.” Lucy Castledine, Director of Consumer Investments at the Financial Conduct Authority, said in a letter: She said she would take “strong action.” Against illegal promotions
“Promotions that are not made through any of these methods are contrary to section 21 of the Financial Services and Markets Act 2000 (FSMA), and are a criminal offence punishable by imprisonment for up to two years, an unlimited fine or both,” thus Castleden.
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She also stressed that FCA will take strict action. Against anyone who is doing illegal activities. We will remove websites, social media accounts, apps or other promotional media that you need to deal with.
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