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The Financial Conduct Authority (FCA) has issued a warning regarding Wealth-Wise, which is suspected of promoting financial services without proper authorization in the United Kingdom. The firm's websites, including wise-wealth.net and trader.wise-wealth.net, may be using misleading contact information. Consumers dealing with this firm are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS). The FCA advises verifying firm authorization using the FCA Firm Checker.
According to the FCA, UK cryptoasset businesses must register under the Money Laundering Regulations if they intend to offer services falling within those rules. This includes 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 that increased money laundering risks. This marks the first enforcement action under the Electronic Money Regulations 2011.
