FCA warns about unauthorized financial and crypto services from Dragonfly Capital Fx

The Financial Conduct Authority (FCA) has issued a warning regarding Dragonfly Capital Fx, which is reportedly offering financial and crypto-related services without proper authorization.

According to the FCA, Dragonfly Capital Fx may be providing or promoting financial services in the UK without the necessary authorization. The firm is not authorized and could potentially be targeting UK consumers. It lists contact addresses in St. Vincent and the Grenadines, South Africa, and Seychelles. Engaging with this firm means consumers will not have access to the Financial Ombudsman Service or protection under the Financial Services Compensation Scheme, thereby increasing the risk of financial loss.

UK businesses dealing with cryptoassets are required to register with the FCA under the Money Laundering Regulations if they intend to offer services that fall 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 evaluates past convictions, regulatory compliance, and business conduct during this process. Misleading or incomplete applications may be rejected.