The Financial Conduct Authority (FCA) has issued a warning regarding Fire Capital Market for offering financial and crypto-related services without proper authorization.
Fire Capital Market, operating through the website firecapitalmarket.com and based in Belarus, is not authorized to offer or promote financial services in the United Kingdom. The FCA cautions that the firm may be targeting UK consumers without approval, with potentially misleading contact details. Engaging with this company means consumers would not have access to the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) protection, making the recovery of lost funds unlikely.
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. Misleading or incomplete applications may be rejected.
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 attributed these issues to inadequate controls that increased money laundering risks. 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. It succeeded 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.
