Britain’s Financial Conduct Authority (FCA) issued a warning to consumers over the launch of CoinBurp. FCA says that the cryptocurrency broker has not been authorized to trade for the planned launch of its BURP token on 26th July.
CoinBurp has already raised $6 million to build a platform for buying and selling non-fungible tokens (NFTs). CoinBurp launch comes at a time when regulators are cracking down on crypto trading platforms.
In a statement, FCA claimed that CoinBurp does not yet hold a valid registration under money laundering, terrorist financing, and transfer of funds regulations. However, CoinBurp has applied for registration.
CoinBurp registration is thus temporary. The firm cannot claim to be registered or authorized to trade.
“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 money laundering regulations.”
CoinBurp listing for registration does not mean it is a registered broker, however, the firm can continue trading its token. FCA statement is meant to warn consumers that they can lose their assets in such undertakings.
In June, FCA warned consumers against investing with Binance, one of the world’s largest cryptocurrency exchanges, over lacking authorizations to conduct its activity. Binance is currently facing regulatory scrutiny globally.