Financial markets are never free from fraudulent activities. Scammers use various tactics to lure investors and trick them into losing their money. One of its examples is the widely debated Infinox scam.

Apparently, Infinox Forex broker is a firm authorised and regulated by the FCA. However, it still faces allegations of running a scheme that made people lose large sums of money. So, what's the truth behind it?

## A prologue to the Infinox scam 

The Infinox scam story goes back to Christmas of 2019, when an Instagram influencer and self-proclaimed Forex trader was accused of scamming hundreds of investors. According to a [documentary by BBC journalist Mobeen Azhar](https://www.bbc.co.uk/bbcthree/article/1bee6bdc-9cc6-4415-84fc-6536ec31d46c), the scammer was a former biosciences student at the University of Plymouth.

The student, who was in his early twenties, was identified as Mr. Gurvz. He offered copy trading services on his Instagram account, with more than one million followers. He maintained a lavish lifestyle on social media and is known for roaming around Plymouth in his rose-gold Maserati.

Allegedly Mr. Gurvz promoted the Bahamas-based Infinox Forex broker to his followers. However, the firm crashed towards the end of 2019, and investors lost millions in GBP. 

## Who is Mr. Gurvz, and how is he connected to the Infinox scam?

The real name of [Mr. Gurvz](https://www.instagram.com/mr.gurvz/?hl=en) is Gurvin Singh Dyal, a resident of Plymouth. Gurvin shares his knowledge on Forex trading and other online money-making ways on the Instagram platform.

Gurvin also keeps his followers posted about his luxurious lifestyle. He regularly shares pictures of his fancy cars, stays at lavish hotels, branded accessories, and travel vlogs.

![scam.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/scam_6614cc5eb0.png)
 
[Source](https://www.instagram.com/p/Cf4VtrGo4_O/?igshid=YmMyMTA2M2Y%3D)

Mr. Gurvz belongs to a modest family and spent his childhood in Ilford, London. He dreamed of becoming a doctor, but because of his low A-level grades, he opted for biomedical science.

According to several Instagram posts, he struggled financially during his early years at university. That's why he took a course on online earning at the University of Plymouth. This started his journey towards becoming a Forex trader and later an affiliate marketer and drop shipping expert.

Gurvin Singh also launched his company, "GS3 Trades", through which he offered Forex copy trading services. He is also the CEO of the "Academy 2 Earn" platform, as per his Instagram bio. Through this platform, he offered various courses for online earnings, like affiliate marketing and dropshipping. 

Allegedly investors lost around £4 million in the Infinox scam
Allegedly, Mr. Gurvz also worked with the Bahamas-based Infinox broker and promoted its services through GS3 Trades. He encouraged his followers to invest in the platform and earn lucrative profits. His marketing prompted hundreds of people, including his close friends and family, to invest in the platform.

Initially, investors made great profits, but the platform suddenly halted withdrawals.

As per the BBC documentary, Jonathan, an investor who lost his funds, explained that Gurvin and his company restricted investors from withdrawing the money. 

He said, “Gurvin and his administrators were like, 'If you withdraw, we'll kick you off the system. It will close all the trades. It will make everything go south.'." This was communicated to investors via a WhatsApp group.

At the end of 2019, the Forex broker finally crashed. An estimate of the total losses of investors’ assets is around £4 million. 

## Is Infinox regulated by the FCA?

Gurvin maintained to his followers that the platform is regulated by the FCA (Financial Conduct Authority) in the UK. The FCA is [one of the strictest financial regulators](/news/article/uk-fca-explains-low-crypto-approval) in the world. However, the Infinox broker he promoted was in the Bahamas. That means people cannot claim compensation for their losses from the Financial Services Compensation Scheme or the Financial Ombudsman Services.

Following the allegations, the UK regulator also issued a [warning against Mr. Gurvz](https://metro.co.uk/2020/01/01/student-made-100000-month-investigation-scammer-11984016/) and his GS3 Trades. The FCA mentioned that the firm is unlicensed and that consumers should deal with it cautiously.

## Response from Mr. Gurvz to the scam allegations

After the FCA warning, the BBC published a four-part documentary named [Scam Land: Money, Mayhem, and Maseratis](https://www.bbc.co.uk/programmes/p09hbmxw). The documentary, released on BBC1, was based on Mobeen Azhar’s investigation. It accused Gurvin Singh Dyal of duping investors and covering the losses. 

Gurvin Singh responded to the FCA warning and the BBC documentary in a post on Instagram. He posted a lengthy note on his account with the caption, "you've seen the fabricated version; now here are the facts".
 
![.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/png_6549cb1c72)

[Source: Mr. Gurvz](https://www.instagram.com/p/CPbhx0JjRaS/?igshid=YmMyMTA2M2Y%3D)

Mr. Gurvz mentioned in the post that he was always willing to cooperate with the FCA over the issue and even contacted the regulators back on 9 January, 2020. 

On the Infinox scam matter, Gurvin said he was working as an affiliate marketer for the firm. He stated that he "identified affiliate marketing as a way to earn an income". He maintained that he was young at that time and wanted to support his education.

In addition, Mr, Gurvz also explained how he started working with the Infinox Forex broker. He disclosed that an Infinox employee (Tristan Jones) and an affiliate marketer (Mirko Notturno) contacted him to promote the firm. According to Mr. Gurvz, Infinox contacted him because of his financial background.  

Furthermore, Gurvin Singh maintained that he believed the firm was registered with the UK regulators. He stated that he attended meetings in the company's central London office, which was its registered address. This helped Infinox seem like a genuine and legitimate broker. 

Moreover, Mr. Gurvz upheld in his Instagram post that he “did not act dishonestly” toward his clients. According to him, he did take instructions from Infinox, but he did not handle clients’ funds. 
Gurvin Singh revealed that investors signed a direct contract with the Infinox brokerage. The agreement clearly outlined all the details regarding how and who would manage their assets.

Last year, Gurvin Singh Dyal also appeared in the [Anything Goes with James English](https://www.youtube.com/watch?v=M7xIdX1yBF8) podcast. He further clarified his stance on the Infinox scam scandal in the podcast. 

He mentioned in the podcast that several other affiliate marketers were promoting the company. But the company used his name as a scapegoat. He also shared how he rebuilt his reputation and what he has been doing to make money. 

## Infinox.com vs. Infinox.bs

Gurvin assured customers they would be dealing with the FCA-approved Forex broker, Infinox Capital. The right domain for the original site is Infinox.com. However, the link provided to the investors was related to a Bahamas offshore company with a Infinox.bs link.

After the crash, many investors asked questions from the UK-based brokerage. However, it has dismissed the allegations by saying that the firm is a ‘separate legal company’.

Anthony Stubbs, the CEO of the Bahamas Infinox Forex broker, holds Mr. Gurvz responsible for clients’ losses. However, he admitted that his firm was responsible for handling [copy trades](/news/article/best-tools-for-trading-crypto) for clients. 

Jay K. Mawji, the managing director of the UK-based firm, dismissed the allegations of the firm’s affiliation with either Mr. Gurvz or the Bahamanian brokerage. Mawji said that the Bahamian firm is a separate company and is not a part of his firm.

## Who's to blame for the £4 million loss?

This scam story is quite complicated, where all the parties have distanced themselves from the matter. However, [Metro.co.uk](https://metro.co.uk/2021/05/16/forex-broker-infinox-accused-of-helping-gurvin-singh-dupe-hundreds-out-of-4m-14587738/) reported that some victims noticed that the contract emails they received were sent by Infinox Capital. It also mentioned that investors would be engaging with both firms.

Moreover, the victims revealed that when Gurvin restricted clients from withdrawing the funds and dealt harshly with the ones who questioned the policy, Infinox employees did not intervene. It indicates that they were supporting Gurvin’s actions.

In addition, an affiliate marketer who worked for the firm in the same capacity as Mr. Gurvz alleged that Infinox was using the Bahamas firm to run illegal schemes. He said the company forced everyone to open accounts on the "Bahamas server". This would allow the company to exploit the Caribbean's lax trading policies and tax havens.

In the Bahamas, traders can use strategies that are 16x riskier than what is allowed in Britain. It also allows traders to make more profit. 
However, Infinox leveraged the Bahamas regulations, allowing them to continue trades even when clients lost their assets. If the company were operated in the UK under the FCA regulations, they would have to close the trades immediately after 50% losses.

Another thing that indicates the involvement of the UK-based company in the Infinox scam is the source of the company’s revenue. According to a [Metro.co.uk](https://metro.co.uk/2021/05/16/forex-broker-infinox-accused-of-helping-gurvin-singh-dupe-hundreds-out-of-4m-14587738/) report, the company generated £9 million in revenue in 2019, of which £1 million was earned through the Caribbean market.

## Bottom line

Infinox Capital is a British Forex broker that is authorised by FCA. In 2019, its name made headlines when investors lost around £4 million because of a scam. The company was allegedly running a dubious scheme through a Bahamas-based offshoot besides running an affiliate marketing program, which Infinox Capital has denied.

Affiliate marketers used their Instagram profiles to portray lavish lifestyles and promote the company's services. Meanwhile, relaxed Bahamian regulations allowed the firm to continue its illegal scheme.


Infinox logo over image of red scam warning

Infinox Forex Broker Scam Uncovered 

UK authorities have [carried out raids](https://www.fca.org.uk/news/press-releases/fca-takes-action-against-unregistered-crypto-atm-operators-leeds#:~:text=No%20UK%20firms%20or%20individuals,down%20or%20face%20enforcement%20action.) on multiple sites in and around Leeds, targeting illegally operated crypto ATMs.

The operation aimed to gather evidence of machines suspected of facilitating buying or converting traditional currencies into digital coins, such as Bitcoin. These machines were found in various locations around the city, and authorities have taken action to shut down their operations.

## FCA investigated illegal crypto ATM UK operations

The [UK's FCA](/news/article/uk-fca-explains-low-crypto-approval) is taking action to enforce its prior announcement that any [crypto ATMs](/news/article/crypto-atm-bitcoin-business) operating within the country without proper authorisation are doing so illegally.

The financial regulatory body has partnered with the West Yorkshire police to combat the illegal operation of cryptocurrency ATMs in Leeds, a city in northern England. The West Yorkshire police's cyber team has identified "several live crypto ATMs", although they did not disclose the exact number or location of these machines.

According to Coin ATM Radar data, there are currently 27 [Bitcoin](/news/article/visa-bitcoin-debit-card-review) ATMs installed across the UK. This operation marks the country's first crackdown on illegally operated crypto ATMs, highlighting the FCA's commitment to upholding regulatory compliance in the burgeoning cryptocurrency market.

According to Detective Sergeant Lindsey Brants of West Yorkshire police, warning letters were issued to the illegal operators instructing them to cease their operations. The letters also clarified that any violation of regulations would lead to an investigation under money-laundering regulations.

## Cryptocurrency companies need to be registered under FCA

According to the FCA, all companies that offer cryptocurrency-related services in the UK must be registered with them to comply with anti-money laundering and counter-terrorist financing regulations.

The FCA has cautioned explicitly that none of the registered crypto asset businesses has the authorisation to provide ATM services. As a result, any UK crypto ATMs currently operating are considered to be doing so illegally.


red image of bitcoin atm and policeman in uk

UK Crypto ATM Raided by Financial Regulator 

Yes, you read that right. According to newly proposed advertising [laws from the United Kingdom](/news/article/cryptocurrency-regulation-uk) Financial Conduct Authority (FCA), executives of crypto firms in the region could face up to two years of jail if they fail to meet specific requirements around advertising crypto.

## What is the FCA and what did it propose?

[The UK FCA is a financial regulatory body](/news/article/uk-fca-explains-low-crypto-approval) that operates independently of the Government. The agency is tasked with regulating financial firms that provide services to consumers and maintaining financial market integrity.

In a [statement released](https://www.fca.org.uk/news/statements/cryptoasset-firms-marketing-uk-consumers-must-get-ready-financial-promotions-regime) on 6 February, 2023, the FCA announced that cryptocurrency firms marketing to consumers in the UK must prepare for the "financial promotions regime". This includes firms based overseas.

If consented to by the Parliament, under the FCA's proposed "promotions regime", crypto firms must either have permission from the agency to advertise their services or a bespoke exemption under the Financial Promotion Order.

If and when this "regime" comes into being, there will be only four courses for advertising [crypto asset services in the UK](/news/article/fintech-companies-uk-2023):

1.	The promotion is communicated by FCA-authorised personnel.

2.	The promotion is made by unauthorised personnel but approved by the FCA. At the moment, legislation is making its way through the Parliament which, if approved, would bring into being a [regulatory gateway](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/995565/HMT_WR_113_Consultation_Response.pdf) that authorised firms will need to pass through to approve financial promotions for unauthorised personnel.

3.	The promotion is conveyed by a crypto firm registered with the FCA under the 2017 regulations known as MLRs (Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer)).

4.	The promotion abides by the conditions of a bespoke exemption in the Financial Promotion Order.

The FCA further said promotions not following one of those routes would be a breach of FSMA (Financial Services and Markets Act 2000) section 21, "which is a criminal offence punishable by up to two years imprisonment".

Along with jail time for crypto firm executives, illegally advertising crypto in the UK could lead to public warnings, websites being taken down, and further enforcement actions.

## Prepare now

Indeed. It is worth noting that the implementation period for this regime is four months from the date of approval by the Parliament.


yellow image of person advertising crypto in the uk

Advertising Crypto in the UK Could Lead to Jail


The UK financial regulatory body has received around 300 applications from cryptocurrency firms, but has [only approved 41 of them](https://cointelegraph.com/news/uk-s-fca-hints-at-why-its-given-only-15-of-crypto-firms-the-regulatory-nod). On 10 January, 2020, the Financial Conduct Authority (FCA) in the United Kingdom put new regulations targeting the cryptocurrency industry into effect.

These regulations are in place to oversee companies operating within this sector and to ensure that they comply with the same anti-money laundering and counter-terrorism financing regulations as traditional financial market companies.

The [UK's financial watchdog](/news/article/fca-crypto-regulation) has only approved 41 out of 300 crypto firm applications for regulatory approval despite plans to make the region a thriving crypto hub.

The UK FCA reported that of the 265 applications evaluated, only 15% were granted registration, 74% were withdrawn by the firms, and 11% were denied. Additionally, 35 applications are still pending review.

The authority did not specify the reasons for the rejection or withdrawal of these petitions. Still, it provided feedback on what is considered to be of "good and poor quality".

## Feedback from the UK's FCA regarding applications

The report stated that petitions deemed more complete included:

•	A comprehensive explanation of the company's business model.

•	The responsibilities of its partners and service providers.

•	The sources of liquidity.

•	Flow-of-funds diagrams.

•	A summary of the risk management policies and systems that have been implemented.


The report implies that some companies may have had applications denied if they could not demonstrate adequate [blockchain-compliance](/news/article/blockchain-use-cases) measures to monitor on-chain transactions.

The FCA also reinforced its stance against money laundering, requiring all companies to appoint a money laundering reporting officer who is actively involved in the application process.

The UK FCA has announced that it is working with other [regulatory agencies](/news/article/uk-crypto-exchange) globally, particularly with the US securities and commodities regulators, to enhance regulations where necessary. This is because many companies offer services on an international level. The FCA has also warned that failure to register before conducting business may lead to criminal charges.


yellow image of London with FCA logo overlayed

UK FCA Explains Low Crypto Firm Approval Rate

## FTX UK warning - not authorized to operate in United Kingdom, warns FCA

A notification about FTX exchange's UK operations has been issued by Britain's Financial Conduct Authority (FCA). The statement said that FTX, one of the world's largest crypto exchanges, is not authorized to operate in the UK.

[The statement](https://www.fca.org.uk/news/warnings/ftx), first published on 16 September, 2022, said the FCA believed FTX might be providing financial services or products without authorization. It further stated that the firm is not authorized by the FCA and is targeting people in the UK.

Referring to FTX UK operations, the statement added that "almost all firms and individuals" who offer, promote, or sell financial services in the UK must be registered. When asked about the notice, a spokesperson of the exchange told [Bloomberg ](https://www.bloomberg.com/news/articles/2022-09-19/uk-regulator-issues-warning-on-crypto-exchange-ftx-to-consumers?sref=3REHEaVI)that they were aware of the FTX UK statement by the FCA. They also noted that among the contact info listed about the exchange, the phone numbers were incorrect, indicating a scammer might be impersonating it. 
On 19 September, 2022, Sam Bankman-Fried, the firm's CEO, [tweeted](https://twitter.com/SBF_FTX/status/1571877868963233792?s=20&t=v-X6cbEyYbmN__tYUB-R2A), reiterating that a scammer was impersonating the platform in the UK by phone. In the tweet, he stated that the exchange will never call anyone by phone and provided links that allowed access to the platform.

As of 14 October, the FCA has updated its warning against the platform to exclude the phone numbers believed to be tied to scammers. However, the regulator still warns UK citizens against engaging with the platform as it is unauthorized to operate in the country.

The statement warned UK citizens about engaging with unauthorized firms. Those who engage with unauthorized firms will not be able to access the Financial Ombudsman Service that settles disputes between companies and individuals.

There will also not be protection under the Financial Services Compensation Scheme (FSCS). If anything goes wrong and they lose their funds, they might not be able to recover the money.

## About the exchange

Launched in May 2019, FTX is a multibillion-dollar crypto exchange and trading platform owned by Bankman-Fried. It is incorporated in Antigua and Barbuda and headquartered in the Bahamas.

It has more than a million users worldwide and is available in many countries. While it is not available in the US, among other countries, it offers US citizens its services through FTX US.

The firm is not the only crypto asset firm to be put in the spotlight by Britain’s regulator for conducting business in the UK without authorization. [Binance](/news/article/guide-to-binance-uk), another major global crypto exchange, has been issued several warnings by the regulator about its activities in the UK. On 7 March, 2022, the firm was warned against undertaking any regulated activities in the UK without their written consent.

So far, only a few crypto asset firms are authorized by the regulator to operate in the UK. They include Gemini, Kraken, and Crypto.com.

FTX UK Warning from FCA

The Financial Conduct Authority ([FCA](https://www.fca.org.uk/news/press-releases/fca-establishes-temporary-registration-regime-cryptoasset-businesses)), responsible for cryptocurrency regulation in the UK, has closed its TRR program. The TRR, or Temporary Registration Regime, was a scheme that allowed digital asset firms to get an interim UK [crypto license](/news/tag/crypto-legal-news). 

Through it, the firms could start their operations in the country while they wait for complete registration. 

However, now the FCA has ended the temporary licensing program for the companies. This step was taken after the digital banking platform [Revolut](/news/article/revolut-news-approved-eea) acquired FCA registration. The company was the last among five waiting for the regulators' approval. As it secured the authorisation, regulators shut down the program.

## UK crypto license TRR initiative

The British regulators took the initiative of interim authorisation in 2020. At that time, it was for the virtual asset firms already providing their services in the country. More than 100 cryptocurrency-related firms entered this scheme to acquire the regulatory body's approval. However, it only deemed 38 among them to be following the [regulations](/news/tag/regulation).  

The program would have been shut down earlier as the British regulatory body announced March 31 as the deadline for complete approval. However, a few companies, including Revolut, got an extension to secure the approval. 

Five digital asset firms were still working in the country in early April without complete authorisation. Besides Revolut, [CEX.io](https://cex.io/), [GlobalBlock](https://www.globalblock.eu/), [Copper.co](https://copper.co/), and [Moneybrain](https://www.moneybrain.com/) were the remaining companies. All these four companies were denied authorisation or withdrew themselves by the end of June. 

On the other hand, Revolut remained the last company on the list. It secured registration in September, marking the TRR program’s end for a license. 

British regulators are known for their absolute measures for [anti-money laundering regulations](/news/article/crypto-aml). That’s why cryptocurrency firms do not get registered easily in the country. With the closing of TRR licensing, they have ensured that non-registered companies [do not operate](/news/article/ftx-uk-ban) in the country.


UK Crypto License Update

Digital bank [Revolut](https://www.revolut.com/), fintech unicorn based in London, has been granted permission to provide cryptocurrency services in the UK after passing the FCA's (Financial Conduct Authority) requirements for anti-money laundering.

The $33 billion valued digital bank Revoult was added to the [crypto asset firm register](https://register.fca.org.uk/s/search?predefined=CA) of the UK financial watchdog on September 26. 

Revolut had been attempting to get listed on the FCA's register since January 2021. The company has been operating as an authorised electronic money institution since May 2018.

The firm had previously offered cryptocurrency buying, selling, and trading to UK customers under the FCA's Temporary Registration Regime (TRR), which was designed to allow businesses to continue operating while their applications were being reviewed.

When the approval deadline passed at the end of March this year, the FCA allowed a limited number of companies to remain on the TRR. Revolut was one of five companies listed on TRR, alongside CEX.I0, Copper Technologies, GlobalBlock, and Moneybrain. None of the other four firms were later approved.

With the addition of the Revolut bank to the UK’s crypto asset firm register, there are now 38 companies authorised to provide custodial and exchange services for crypto assets.

## Other firms to win FCA crypto regulation

The [FCA](/news/article/ftx-uk-ban) was designated as the UK's anti-money laundering and counter-terrorism financing authority at the beginning of 2020. Since then, any firm wishing to engage in crypto activity in the UK has been required to register with the organisation under the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017.

[Gemini](/news/article/gemini-crypto-exchange), [Kraken](/news/article/kraken-ceo), eToro, and Archax are among the other firms that have met the FCA's anti-money laundering and counter-terrorist financing (AML/CFT) standards.

Crypto exchange, crypto.com was the most recent addition, joining the list in August.

Currently, 38 of 248 crypto firms seeking registration have met the FCA's standards and have been granted permission to operate in the UK.





Digital Bank Revolut gets approval to offer crypto services in UK

The Financial Conduct Authority (FCA), responsible for crypto regulation in the UK, has reiterated the unauthorised status of FTX. Recently,[FCA issued a warning](https://www.fca.org.uk/news/warnings/ftx) for the consumers in the country that the exchange is working without approval. The regulating body has added the company to the list of unregistered digital asset firms. Following this, the FTX UK ban is expected. 

The crypto exchange had planned to seek [expansion into the UK](/news/article/ftx-europe-uk-expansion) and European markets in March 2022. The Sam Bankman-Fried exchange pursued approval from the British regulators. However, FCA’s strict enforcement of anti-money laundering laws has not allowed the business to get the registration.

## FCA’s warning for consumers

The warning issued by the crypto market watchdog says, “We believe this firm may be providing financial services or products in the UK without our authorisation.” It cautioned the investors that they would not get their money back in case of losses. 

It also mentioned that the consumers of this service would not be eligible for Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS). Moreover, regulators advised that consumers must deal with registered firms to protect themselves financially. 

## Enforcement of crypto regulations in the UK

This is not the first instance of such a warning from the British regulating body. Earlier, they issued warnings for several virtual asset service providers. Among them, a famous firm is Binance. Last year, in June, regulators deemed the activities of Binance to be unauthorised, which led the firm to relocate its headquarters to Ireland.

Meanwhile, FCA received around 248 applications for authorisation. But only 37 are registered cryptocurrency and digital asset companies in the country. Recently, Crypto.com has been one firm to get approval. Other known names to get the approval are eToro UK, Rubicon Digital Limited, DRW Global Markets LTD, Uphold Europe Limited, etc.

## Will it lead to an FTX UK ban?

Britain’s policies have been strict for the enforcement of [regulations](/news/article/fca-crypto-regulation). The list of unapproved firms indicates that. FTX has become the latest company on the list. Regardless of the strict enforcement, the regulators have not yet pushed for a complete ban on any firm. Therefore, an FTX UK ban also looks unlikely. Nonetheless, this step may affect the company’s operations in the region. 


FTX UK ban expected, FCA iterates unlicensed status


A leading cryptocurrency exchange, [Crypto.com](https://crypto.com/) gets authorisation to operate in the United Kingdom. The country’s Financial Conduct Authority (FCA) provided the registration, in which the Crypto.com news announced on Wednesday. This will allow the firm to expand its crypto asset business throughout the UK as per the country’s regulations. 

Co-Founder and CEO of the firm, Kris Marszalek, shared his views on the confirmation and declared it a ‘significant milestone’ for the exchange. He believes that as the UK is looking to become a [global crypto hub](/news/article/cryptocurrency-investment-uk), expanding the firms crypto services to the region at this time would benefit them. He also showed his commitment to cooperating with the FCA regulations in order to strike the balance of regulation and innovation.

## Crypto.com news: Exchange to trade under FORIS DAX UK LIMITED

Other Crypto.com news suggests that the exchange might not work with this name in the UK. However, the FCA has listed a company under the name FORIS DAX UK LIMITED with the authorisation for certain crypto asset activities. It will also follow anti-money laundering and terrorism financing regulations in the country. 

Under the FCA registered trading name, the platform can offer services including exchanging one digital token for another or exchanging digital token for fiat money or vice-versa. 

Apart from that, FCA is also maintaining a [list of unregistered businesses](https://register.fca.org.uk/s/search?predefined=U) involved in digital assets trading. Along with 248 other names, CryptoCOM is also on the list. Mainly, the FCA has not authorised these companies as they fail to comply with the money laundering regulations.

## Significant regulatory approvals for Crypto.com

In August, the exchange was able to secure significant regulatory approvals. Though the FCA approval is the most recent one for the firm. Crypto.com has been regularised by Canada’s Ontario Securities Commission (OSC) and Cayman Islands’ monetary authority. Canada’s OSC approved a pre-registration undertaking from the firm on 15 August. Cayman Islands’ authorities also accepted the exchange as a virtual asset service provider on 11 August.  





Crypto.com news: The exchange gets UK approval

The UK’s Financial Conduct Authority (FCA), said it plans to implement a few changes. One is about the caps on individual Bitcoin holdings, while the other regards the way of how risky assets can be marketed.

According to the [official document](https://www.fca.org.uk/news/press-releases/fca-clamps-down-marketing-high-risk-investments-consumers), companies will be obliged to use more blatant warnings of cryptocurrencies being risky investment options. Also, all incentives to invest in crypto, such as referral bonuses, are becoming banned. New guidelines are, for now, limited to marketing of high-risk financial products such as some speculative illiquid assets, and peer‑to‑peer (P2P) platforms. However, even though guidelines don’t apply to cryptocurrency ‘per se’, the FCA warned they are also considered to be very risky.

The FCA asserted people are investing in digital assets without understanding how volatile and, therefore, risky this is – just because “a friend” referred it to them. Therefore, the FCA advised all potential investors, not to put more than 10% in risky assets. 

After the recent crash of the crypto market that washed out almost $2 trillion of the market, the regulator said that it is now, more than ever, be assured cryptocurrencies are a very speculative and high risk asset class.

“Consumers should only invest in crypto assets if they understand the risks involved and are prepared to lose all of their money. We expect to take a consistent approach to crypto assets that is taken for other high risk investments,” the report said.

## FCA says all directions must be clear and simple

The FCA’s executive director for markets, Sarah Pritchard, said it’s important for people to be able to “invest with confidence, understand the risks involved, and get the investments that are right for them which reflect their appetite for risk”.

Recently, however the United Kingdom said it would like to become a [global crypto-asset hub](https://news.monitalks.io/news/article/fca-crypto-regulation). It will be interesting to see how the development of the FCA’s regulation heightens or hinders the crypto industry in the United Kingdom.

The FCA added it “looks forward” to the direction given by the authorities of how crypto marketing should look and that the “qualifying of cryptoassets” rules would follow after the legislation is complete.

Pritchard added that all the risk warnings must be easy to follow and written in simple language so all can understand them.

 “Where we see products being marketed that don’t contain the right risk warnings or are unclear, unfair or misleading, we will act,” she added.



UK FCA: Crypto investments are risky

If you ask Nikhil Rathi, the new chief executive, FCA crypto regulation may become a new item on its agenda. According to him, the UK’s Financial Conduct Authority (FCA), has some severe intentions to strengthen cross-border crypto-asset [regulation](/news/article/crypto-regulations). 

David Hamilton of Pinsent Masons commented on [Rathi’s recent speech](https://www.fca.org.uk/news/speeches/how-uk-will-regulate-future) on how the US and the UK had “agreed to deepen ties”, regarding financial development. He also added that both countries were “exchanging views on crypto-asset regulation and market developments”. 

“Intensive dialogue between our nations is essential to ensure we deliver consistent outcomes,” said Rathi. He added that since the UK had left the European Union, it got the rare opportunity to connect its regulation to today’s market challenges.

Rathi also confirmed FCA primarily invested in data and technology, and kept scanning 100,000 websites for fraud on a daily level.

“The US and UK will deepen ties on crypto-asset regulation and market developments – including relation to stablecoins and the exploration of central bank digital currencies,” Rathi concluded.

## FCA crypto regulation to be more innovative 

Recently, the UK, US and Singapore launched the International Organization of Securities Commissions (IOSCO) governance body on DeFi and crypto market integrity risks. 

Hamilton commented that Rathi’s speech was vital, especially if viewed in the context of the G20 Financial Stability Board’s (FSB) [announcement](https://www.fsb.org/2022/07/fsb-statement-on-international-regulation-and-supervision-of-crypto-asset-activities/) earlier this month on establishing a new regulatory framework for crypto supervision.

Hamilton also added that Rathi’s speech showed just how important it is for companies to have adequate policies and procedures to comply with the Money Laundering Regulations.
Rachael Preston of Pinsent Masons asserted the speech shows FCA’s intention to become an essential player of the regulatory game. 

“Expect to see a more collaborative, innovative and adaptive style of supervision in the future, with the FCA continuing to push the boundaries of the role of a financial regulator in modern society,” Preston said.

She also added that technology solutions will play a substantial leading role in the FCA’s transformation plans, and will be a key factor regarding its effectiveness. 
 
“The question is whether such an approach can deliver the right outcomes to what is an ever more complex, nuanced and user experience-led market,” Preston said.



FCA crypto regulation – new item in the UK-US financial co-lab


When it comes to crypto investment, the UK wants to be at the front of the field.

With the rise in popularity of the crypto markets, it is no surprise that countries put in plans to benefit from this surge of new money. One country in particular that wants to be at the forefront of new technologies is the United Kingdom.

The interest levels are clearly evidenced by the popularity of the search term 'crypto investment uk'.
The government has decided that stablecoins will be recognised as a form of payment. This is one step closer to crypto being accepted as forms of currency instead of just stores of value.

## Cryptoasset Engagement Group Will be Created

This is only one measure as part of a package to make the UK a global technology and crypto investments hub. Another is legislating a 'financial market infrastructure sandbox' which will help firms and companies innovate, experiment, and create, leading to more jobs opening up and more money flowing into the UK, helping boost the economy. A Cryptoasset Engagement Group will also be created to increase communication between the government and the industry. It will advise the government on any issues it may face while building the crypto-asset sector.

Not only is the government trying to regulate, it is also creating its own non-fungible tokens (NFTs). Finance Minister Rishi Sunak has asked the Royal Mint (the government-owned company responsible for minting coins within the UK) to create NFTs by the summer of 2022. With summer coming, we expect more info to be brought to light relatively soon. This opens many doors and opportunities for crypto enthusiasts and UK crypto investment firms.

## Other Measures Taken to Assist Regulation

Other measures the UK is taking to help regulate the markets include looking for ways to enhance UK tax system competitiveness to encourage crypto-asset market development in the UK. It will also review how DeFi loans are treated for tax purposes. In May, a two-day event will see the [Financial Conduct Authority](https://www.fca.org.uk/) meet industry participants to learn their views regarding crypto-asset regime development.

The UK, well known for its advancements in technology and innovation, will unlock a massive new stream of income and business opportunity. This will create many new jobs as start-up companies and crypto investment firms look to take on new employees and build up their businesses. 

This will help boost the economy by an enormous margin. As I write, the total crypto market cap is $2.02 trillion. Tapping into just a fraction of this amount will do wonders for the UK. Not only will the UK dabble in the market, it will be one of the top leaders and innovators in the entire world. This is exciting news, and it will be interesting to see how the future of crypto investments in the UK unfolds.

More [Business news](/news/category/crypto-business-news).


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