UK Financial Watchdog Warns People over CoinBurp Crypto Launch

UK Financial Watchdog Warns People over CoinBurp Crypto Launch

Crypto News News
July 24, 2021 by Elias Powell
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On Sunday, the Financial Conduct Authority (FCA) in the United Kingdom made an announcement in its latest crackdown over crypto trading. According to the regulator, CoinBurp, the cryptocurrency broker, is not fully authorized before their planned launch on Monday of the $BURP token, as well as their initial exchange offering. However, the FCA did say

On Sunday, the Financial Conduct Authority (FCA) in the United Kingdom made an announcement in its latest crackdown over crypto trading. According to the regulator, CoinBurp, the cryptocurrency broker, is not fully authorized before their planned launch on Monday of the $BURP token, as well as their initial exchange offering. However, the FCA did say that it was possible for the crypto brokerage to start its business under the temporary registration it has been issued, as long as it has the right controls in place. Last week, CoinBurp said that it had managed to raise more than $6 million for building a platform that could be used for buying and selling non-fungible tokens (NFTs).

These are digital assets that have attracted interest from a number of investors, along with scrutiny from regulators because of the concerns regarding risks. The crypto brokerage, which has advertised the launch of its token on its website, did not make a statement immediately. According to the FCA, the company has not been granted complete FCA registration under the terrorist financing, money laundering, and transfer of funds regulations (information on the payer). But, they did say that CoinBurp had submitted an application to them for the purpose of registration.

Therefore, the name of the company can be found on the temporary registration register of the FCA, but the watchdog said that this doesn’t mean it is allowed to claim itself to be authorized and registered with the FCA. The regulator went on to say that companies that are granted this status can continue trading, but the personnel of such firms haven’t been assessed to be fit and proper and their application hasn’t been evaluated for the purpose of money laundering regulations. In a statement made on Friday, the FCA said that developing this product means that the crypto broker will list NFTs on the market as a regulated broker and can make it available for investors in small and large quantities.

The statement by the FCA is the latest in the regulator’s warnings to people about them losing all their money in crypto assets. In June, the watchdog had announced that one of the largest cryptocurrency exchanges in the world i.e. Binance, was no longer permitted to conduct any regulated activity in the country. Along with this announcement, the authority had also warned consumers regarding the platform. Since the move by the FCA, Binance appears to have come under increasing regulatory scrutiny, not just in the UK, but globally. 

This move by the FCA is another indicator that regulators are not comfortable with the anonymous and decentralized nature of cryptocurrencies. Likewise, they believe the volatility of these digital currencies can lead to disaster, which is one reason they are constantly issuing warnings to people and are also trying to regulate the space. Until CoinBurp is given proper authorization to provide its services, there will be some degree of doubt and uncertainty surrounding the crypto broker and its upcoming token. 

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