UK issues urgent warning over crypto investment company

The Financial Conduct Authority (FCA), the UK's financial regulator, has issued an urgent warning regarding Digital Assets Nest, a cryptocurrency investment company. The Financial Conduct Authority warns that this company is promoting financial services without proper authorization, posing significant risks to investors.

The United Kingdom refers to Nest of digital assets As an unauthorized crypto company

In its warning regarding Digital Assets Nest, the FCA advised against doing business with the company to avoid potential fraud. The agency said dealing with such companies could result in significant financial losses.

According to the rule, in the UK, businesses and individuals must be authorized by the FCA to offer or promote financial services. It encourages investors and traders to ensure they deal with licensed companies to protect their investments and gain greater protection should problems arise.

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“If you deal with this company, you will not be able to access the financial mediation service if you have a complaint. You also won't be protected by the Financial Services Compensation Scheme (FSCS) if things go wrong. you are unlikely to get your money back if you stop. The company is out of work, I warned agency.

Based on information On its website, Digital Assets Nest is a crypto investment company based in London. It provides distinguished investment services to investors, individuals and businesses.

BeInCrypto previously reported that the FCA implemented a new rule in October 2023. The rule requires cryptocurrency companies to ensure their marketing is “clear, fair and not misleading.” Additionally, it requires companies to provide visible risk warnings to UK consumers.

However, according to the FCA, some crypto entities, including... KuCoin And HTX (Huobi) did not comply with the new regulations. As a result, the agency listed them as “unlicensed businesses.” In a letter, Lucy Castledine, director of consumer investment at the FCA, said it would take “robust action” against illegal promotions.

“Promotions which are not carried out using one of these methods would constitute a breach of section 21 of the Financial Services and Markets Act 2000 (FSMA), which constitutes a criminal offense punishable by imprisonment of up to two years, an unlimited fine, or both” declaredT Castledine.

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She also confirmed that the FCA would take a strict stance against anyone carrying out illegal activities. This will remove websites, social media accounts, apps, or other promotional materials that require engagement.