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The Financial Conduct Authority (FCA) has issued a warning regarding TRADESUP LIMITED, a firm allegedly offering financial and cryptocurrency services without proper authorization in the United Kingdom. The FCA highlights that TRADESUP LIMITED, located at Bryn Eilian, Caernarfon, may provide misleading or fraudulent contact information. Consumers engaging with unauthorized firms are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme, making fund recovery unlikely if such firms fail. The FCA advises consumers to verify firm authorization through its Firm Checker to avoid scams.
According to the FCA, UK cryptoasset businesses must register under the Money Laundering Regulations if they intend to offer services within those rules. This requirement applies even to firms already authorized for other financial services. Registration involves submitting an application via the FCA's Connect system, paying applicable fees, and providing detailed business information. All officers, managers, and beneficial owners must pass a "fit and proper" assessment. The FCA evaluates past convictions, regulatory compliance, and business conduct during this process. 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 access to crypto trading through other Coinbase entities despite restrictions. This resulted in $226 million in transactions. The FCA attributed these issues to inadequate controls that increased money laundering risks. This represents the first enforcement action under the Electronic Money Regulations 2011.
