The Financial Conduct Authority (FCA) has issued a warning against Fibonachis.com for allegedly offering financial and cryptocurrency services without the necessary authorization. The FCA claims that the website is impersonating an FCA-authorized firm, Fibonacci Finance Limited, by using similar contact details to mislead individuals into believing they are dealing with a legitimate business. The clone firm reportedly lists addresses in London and provides multiple phone numbers and email contacts that differ from those of the genuine firm. The FCA advises against engaging with this clone and recommends verifying firm authorization through the FCA Firm Checker to avoid potential fraud. Additionally, those scammed after October 7, 2024, may have recourse through protections established by the Payment Systems Regulator.
UK cryptoasset businesses are required to register with the Financial Conduct Authority 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 via 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.
According to 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 contributing factors that increased money laundering risks. This enforcement action marks the first 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.
