FCA Exposes Second Crypto Clone Broker This Month

The City watchdog has sounded an alarm over yet another fraudulent clone, but this time shedding light on a cryptocurrency firm. The FCA said on Thursday that a company called GMT Crypto was impersonating regulated firm GMT Communications Partners LLP to lure and possibly scam investors.

The FCA warning comes just two weeks after the authority warned the public against the suspicious operation of Cryptobourse, which has been revealed to be manipulating investors by claiming the reference number of an FCA-regulated called Crypto Facilities Limited.

Although GMTCRYPTO doesn’t explicitly claim to be licensed by the FCA, they are in fact using the details of regulated companies in an attempt to convince investors that they work for a genuine firm.

Specifically, GMT Crypto provides contact details, which the FCA warns may be false or mixed with details of GMT Communications.

According to the financial regulator, GMT Crypto operating from the website gmt-crypto.com is not authorized to promote financial services in the UK and has no association with the authorized firm. The company is located at 27 Old Gloucester Street London, and the website of the fake venture offers crypto trading. Apart from the questionable advertisement, its products are lacking any specifics.

The firm assures investors that the service uses “a sophisticated blend of engineering with experience of experience to empower thousands of marketers to access markets around the world through the use of digital currency entirely outside the traditional financial system.”

Citing the “concerns identified around consumer protection and market integrity,” the FCA was reportedly eyeing a complete ban on the sale of crypto-CFDs to retail investors. In a consultation with relevant stakeholders, the regulator touted the possibility of excluding derivatives referencing “cryptoassets that qualify as securities.” But in all cases, CFDs on cryptos would remain subject to ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term’s restrictions on cryptocurrency CFDs, including lowering the maximum Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term that companies can offer.