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UK warns investors against digital asset nest
The Financial Conduct Authority (FCA), the UK’s financial regulator, has issued an urgent warning on Digital Assets Nest, a cryptocurrency investment firm.
The FCA warns that this firm is promoting financial services without proper authorisation, posing significant risks to investors.
FCA reports Digital Assets Nest as a rogue crypto company
In its warning about Digital Assets Nest, the FCA advises against dealing with this company to avoid potential rip-offs. The agency said that engaging with such companies can result in significant financial losses.
According to the rule, in the UK, firms and individuals must be authorized by the FCA offer or promote financial services. It encourages investors and traders to ensure they are dealing with licensed firms to safeguard their investments and have greater protection in the event of a problem.
To know more: The state of cryptocurrency regulation in the UK
Digital Assets Nest is on the FCA’s list of unauthorized firms. Source: FCA
“If you deal with this company, you will not have access to the Financial Ombudsman Service in the event of a complaint. You will also not be protected by the Financial Services Compensation Scheme (FSCS) if things go wrong. This means you are unlikely to get your money back if the company goes bankrupt,” the agency says warned.
Based on information on its website, Digital Assets Nest is a cryptocurrency investment firm based in London. It offers premium investment services to investors, both individuals and companies.
BeInCrypto previously reported that the FCA implemented a new rule in October 2023. The rule requires crypto companies to secure their marketing it is “clear, fair and not misleading”. It also requires companies to provide important risk warnings to UK consumers.
However, according to the FCA, some crypto entities, including KuCoin and HTX (Huobi), did not comply with the new rules. As a result, the agency listed them as “unlicensed companies.” Lucy Castledine, director of consumer investments at the FCA, said in a letter would take “strong action” against illegal promotions.
“Promotions which are not made using one of these routes will be in breach of section 21 of the Financial Services and Markets Act 2000 (FSMA), which is an offense punishable by imprisonment for up to 2 years, an unlimited fine, or both,” Casteldine declared.
To know more: Cryptocurrency Regulation: What are the advantages and disadvantages?
She also underlined this the FCA will take a tough stance against those who carry out illegal activities. It would delete websites, social media accounts, applications, or other promotional media that require management.
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