Regulation
UK warns investors against Digital Assets Nest
The Financial Conduct Authority (FCA), the UK’s financial regulator, has issued an urgent warning regarding Digital Assets Nest, a crypto investment company.
The FCA warns that this company is promoting financial services without proper authorization, posing significant risks for investors.
FCA considers Digital Assets Nest an unauthorized crypto business
In its warning regarding Digital Assets Nest, the FCA advises against dealing with this company in order to avoid possible scams. The agency said engaging with such companies can result in significant financial losses.
According to the rule, in the United Kingdom, businesses and individuals must be authorized by the FCA offer or promote financial services. It encourages investors and traders to ensure they deal with licensed companies to protect their investments and have greater protection if problems arise.
Learn more: The State of Crypto 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 mediation service if you have a complaint. You also won’t 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 said. warned.
Based on information on its website, Digital Assets Nest is a crypto investment company based in London. It offers high-end investment services to investors, individuals and businesses.
BeInCrypto previously reported that the FCA implemented a new rule in October 2023. The rule requires crypto companies to ensure their marketing is “clear, fair and not misleading”. Additionally, it requires companies to provide significant risk warnings to UK consumers.
However, according to the FCA, some crypto entities, including KuCoin and HTX (Huobi), did not comply with the new regulations. Therefore, the agency listed them as “unlicensed businesses.” In a letter, Lucy Castledine, director of consumer investments at the FCA, said that they would take “strong measures” against illegal promotions.
“Promotions which are not carried out via one of these routes will contravene section 21 of the Financial Services and Markets Act 2000 (FSMA), which is a criminal offense punishable by imprisonment of up to up to two years, an unlimited fine, or both. » Castledine declared.
Learn more: Crypto regulation: what are the advantages and disadvantages?
She also emphasized that the FCA will take a tough stance against anyone carrying out illegal activities. This would remove websites, social media accounts, apps or other promotional materials that require manipulation.
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