The Financial Conduct Authority of the U.K. has warned traders against an unregulated firm called Cryptorobot365. The regulatory body blacklisted the firm for providing cryptocurrency investment services in the country without authorization from the agency.

The FCA also warned investors yet again to check a firm’s authorization status before investing their money. It issued similar warnings to the traders before exposing a clone firm “Apex Tradex” earlier this week.

Cryptorobot365 did not receive any license of any kind to provide digital currency services in the country; hence, it is not allowed to advertise its products or operate. The company operates through its website (https://cryptorobot365.com) and claims to be registered in an unspecified jurisdiction.

It asked investors to avoid having engagements with the firm and stay away from shady brokers. FCA also mentioned that money invested in these companies could not be recovered, should things go awry.

It stated:

“You should be aware that if you give money to an unauthorized firm, you will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if things go wrong.”

Unauthorized cryptocurrency brokers in the country have been at the receiving end of the FCA’s stringent measures against curbing illegal activity in the digital assets sector. It warned investors, in November 2017, to read the Cryptocurrency Contracts for Difference (CFD) carefully.

Earlier this week, it exposed a clone firm called “Apex Tradex” that operated under a false pretense in the country. The firm was pretending to be operated by authorized firm ETX Capital, which is a platform working under Monecor (London) Ltd.

The clone firm was reportedly “registered” in the Marshall Islands. Such firms usually cold call their targets, trying to lure them into crypto investing by pretending to be a popular broker.

It wrote on its official website:

“If you think you have been approached by an unauthorized or clone firm, or contacted about a scam, you should contact us. If you were offered, bought, or sold shares, you can use our reporting form.”

The regulatory authority said, in December 2017, that they do not intend to regulate digital assets but do not approve of investments in the sector either. They have, repeatedly, asked users to check its officially registered before investing in any firm.

UK’s FCA Issues Yet Another Warning Against Crypto Brokers was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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