The Financial Conduct Authority (FCA) has issued a warning regarding Guru4Invest, which is offering financial and crypto-related services without proper authorization.
According to the FCA, BG Wealth Sharing, also known as dsjex.net, lacks authorization to provide financial or crypto services in the UK and may be targeting UK consumers. The FCA advises against engaging with this firm and warns that it might use false contact information to appear legitimate. Customers dealing with this firm are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme, meaning they may not recover funds if issues arise.
UK cryptoasset businesses must register with the FCA under the Money Laundering Regulations if they intend to offer services falling 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 considers past convictions, regulatory compliance, and business conduct during evaluation. 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 a restriction. This resulted in $226 million in transactions. The FCA cited inadequate controls as the cause of these failures which increased money laundering risks. This marks the first enforcement action under the Electronic Money Regulations 2011.
Learn Signal reports that the Financial Conduct Authority (FCA) was established on April 1, 2013, succeeding the Financial Services Authority (FSA) 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.
