The U.K.[1] Financial Conduct Authority (FCA) has warned investors about a so-called “clone’ company of investment firm Fair Oaks Capital Ltd., in a statement published[2] Aug. 7. Clone firms are companies that carry out business activities under the pretense that they are a firm registered by the FCA.
Almost all legal entities involved in financial services in the U.K. must be authorized or registered by the FCA. In the statement, the FCA[3] outlines a fraudulent company targeting people in the U.K. using registration data of firms authorized by the regulator. The clone, Fair Oaks Crypto, allegedly aims to hoodwink potential scam victims by claiming that they represent Fair Oaks Capital.
The FCA provided the contact details of the clone firm, so that potential investors or clients would know to avoid it. The British regulatory agency also suggested that investors check the Financial Services Register before dealing with a firm in order to ensure it is legitimate and operating legally.
In May, the FCA opened[4] 24 investigations into cryptocurrency businesses over financial regulatory compliance in order to “determine whether they might be carrying on regulated activities that require FCA authorization.”
Generally, the FCA has demonstrated a positive regulatory approach towards cryptocurrencies. Recently, it announced[5] the creation of a global initiative called Global Financial Innovation Network (GFIN) to improve collaboration between regulators and companies on fintech innovations like blockchain[6]. GFIN aims to consult on various topics, including the regulation of securities and Initial Coin Offerings (ICO[7]).
In March, the FCA launched[8] a cryptocurrency task force in collaboration with the Bank of England[9] in order to
