The Financial Conduct Authority (FCA) has issued a warning regarding Crypto Capital Growth, a firm allegedly offering financial and crypto-related services without proper authorization. The FCA highlighted that the firm operates through cryptocapitalgrowth.com and may be targeting UK consumers with misleading contact information. Engaging with this firm could leave individuals without access to the Financial Ombudsman Service or protection under the Financial Services Compensation Scheme. The FCA advises the public to verify firm authorization using its Firm Checker.
According to the FCA, UK cryptoasset businesses must register under the Money Laundering Regulations if they intend to offer services within those rules. This requirement applies even to 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 evaluates past convictions, regulatory compliance, and business conduct during this process.
In a 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 restrictions. This resulted in $226 million in transactions. The FCA cited inadequate controls as increasing money laundering risks and noted that this marks the first enforcement action 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 a comprehensive reform of the UK’s financial regulatory framework 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 the UK’s financial markets, and promoting effective competition in consumers’ interests.
