The Financial Conduct Authority (FCA) has issued a warning regarding Walton Assets, a firm offering financial and crypto-related services without proper authorization.
According to the FCA, Walton Assets, located at 189 Great Portland Street, London, is providing these services without authorization and may be targeting UK residents. Consumers engaging with this firm are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS), making it unlikely they will recover lost funds. The FCA advises consumers to verify firms through its Firm Checker and warns that unauthorized firms may use false contact details to appear legitimate.
UK cryptoasset businesses must register with the FCA under the Money Laundering Regulations if they intend to offer services falling within those rules. This requirement applies even to firms already authorized for other financial services. Registration involves submitting an application through the FCA’s Connect system, paying applicable fees, and providing detailed information about the business, its activities, and key individuals. All officers, managers, and beneficial owners must pass a “fit and proper” assessment. The FCA considers past convictions, regulatory compliance, and business conduct during evaluation. Misleading or incomplete applications may be rejected.
In a press release by the FCA, CB Payments Limited (CBPL), part of the Coinbase Group, was fined £3.5 million for allowing 13,416 high-risk customers to access crypto trading through other Coinbase entities despite a restriction. This resulted in $226 million in transactions. The FCA cited inadequate controls as the cause of these failures which increased money laundering risks. This marks the first enforcement action under the Electronic Money Regulations 2011.
Learn Signal reports that the Financial Conduct Authority was established on April 1, 2013, succeeding the Financial Services Authority as part of a comprehensive reform of the UK’s financial regulatory framework following the global financial crisis. Operating independently of the UK government, it is funded by fees charged to the financial services industry. Its primary objectives include protecting consumers, ensuring market integrity in the UK’s financial markets, and promoting effective competition in consumers’ interests.
