UK Financial Conduct Authority warns users about CoinBurp and its ICO BURP token

According to UK Financial Conduct Authority (FCA), a London-based cryptocurrency broker CoinBurp was not fully authorized before the scheduled launch of the BURP token and its ICO.

UK financial watchdog warns consumers over CoinBurp crypto launch

As you may know, CoinBurp raised $6m in a bid to build a “Coinbase for Non-Fungible Tokens” within their ecosystem. CoinBurp says on its website that “$BURP is coming! Be the first to know when we launch our very own utility and governance token.” This attracts interest from some investors but is also subject to scrutiny from risk-aware regulators.

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“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,” FCA said in its statement.

But, CoinBurp could start a business under its temporary registration, provided it had the correct controls in place. Furthermore, while CoinBurp is listed on the FCA’s provisional register, this does not allow any company to claim to have been registered or authorized 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 money laundering regulations,” the FCA said.

The FCA statement is the latest in the watchdog’s warnings to consumers that they could lose all of their money in crypto assets. Accordingly, as AZCoin News reported, the FCA has also warned about Binance, saying it cannot perform any regulated operations, and issued a warning to consumers about the platform. As a result, this exchange has come under strict regulatory scrutiny globally.

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