In the latest crackdown on crypto trading, Britain’s Financial Conduct Authority (FCA) warned on Sunday that cryptocurrency broker CoinBurp does not have permission to release its $BURP coin and first trade offering on Monday, July 26.
Last week, CoinBurp announced that it had secured $6 million to develop a system for purchasing and trading non-fungible tokens (NFTs), virtual commodities that have piqued the curiosity of some traders but also drawn regulatory scrutiny from others concerned about the hazards.
“The firm does not yet hold full FCA registration under the money laundering, terrorist financing and transfer of funds (information on the payer) regulations … but has submitted an application for the FCA for registration,” in a statement, the FCA stated.
Despite the fact that CoinBurp is featured on the FCA’s interim registration record, no firm can declare to be recognized or licensed by the regulator, according to the watchdog.
“Whilst firms with this status can continue to trade, such firms and their personnel have not yet been assessed as fit and proper, and we have not yet determined their application for the purposes of the money laundering regulations,” the FCA asserted.
On its website, CoinBurp, which could not be reached for comment right away, claims that “$BURP is coming! Be the first to know when we launch our very own utility and governance token.”
“Building this product means that CoinBurp – as a regulated broker – will have NFTs listed on the market and can be made available for investors in large and small quantities,” the company said in a news release on Friday.
The FCA’s statement is the latest in a series of warnings to customers that investing in crypto assets could result in them losing all of their capital.
The FCA announced in June that Binance, one of the world’s largest cryptocurrency exchanges, could not engage in any managed system and published a consumer alert about the website, which has subsequently come under increased legal oversight around the world.