- The UK’s Financial Conduct Authority (FCA) warned that crypto broker CoinBurp is not fully authorised ahead of the launch of its $BURP token
- CoinBurp could start operating under its temporary registration, provided it has the necessary controls in place
- However, the listing does not allow any company to claim to be registered or authorised by the FCA
- The latest crackdown follows the FCA’s decision to ban crypto exchange Binance from undertaking any regulated activity in the country
In the latest crackdown on cryptocurrencies, the UK’s Financial Conduct Authority (FCA) warned on Sunday that crypto broker CoinBurp is not fully authorised ahead of the launch of its $BURP token.
However, the FCA added that CoinBurp could start operating under its temporary registration, provided it has the necessary controls in place.
Last week, the company said it had raised $6 million to build a platform to buy and sell non-fungible tokens (NFTs) — digital assets that have attracted interest from some investors, but which have drawn scrutiny from regulators.
“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,” the FCA said in a statement on Friday.
While CoinBurp is listed on the FCA’s temporary registration database, such a listing does not allow any company to claim to be registered or authorised by the FCA.
“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 continued.
“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.”
In June, the FCA said that Binance — one of the world’s largest cryptocurrency exchanges — could not conduct any regulated activity in the country and issued a warning to consumers about the platform, which has since been undergoing regulatory scrutiny around the world.