UK regulator warns users to beware of digital currency trading firm Cryptoconomist

The UK Financial Conduct Authority (FCA) recently issued a public warning on its website against an investment company that promised high returns on digital currency trading.

The Financial Conduct Authority (FCA) is responsible for supervising more than 70,000 companies in the financial industry. The Cryptoconomist company that was warned is registered in London, UK.

In the warning, the FCA believes that the trading website provides financial services or products to UK users without obtaining authorization from the regulator. The agency explained:

"Because companies and individuals who offer, promote or sell financial services and products in the UK must be authorised by us."

According to CoinDesk, when they checked the Financial Services Register (the registration information of companies and individuals on the FCA), they found that Cryptoconomist was listed as "illegal". Here are the results of the search:

"This company is either operating a legitimate business without authorization or it is running a scam. We strongly recommend that you avoid doing business with this unauthorized company."

According to the Cryptoconomist website, they have been operating since 2013 and aim to provide traders with the opportunity to "earn good returns" through one of their referral programs, where they promise to give back 4% and 1.5% returns to those who develop 1st and 2nd lines respectively.

The investigation revealed that Eller Otte was a director and secretary of the company. However, no previous employment history of Otte was found.

Original article: http://www.coindesk.com/uk-regulator-warns-against-crypto-investment-firm/
By Yessi Bello Perez
Translator: printemps
Editor: printemps
Source (translation): Babbitt Information