FCA Joins ASIC and Other Regulators in Warning against 4XFX

According to a public warning notice from the Financial Conduct Authority (FCA) Financial Conduct Authority (FCA) The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol Read this Term), British investors have been warned not to take out any financial services with 4XFX as the FX broker operates in the country without its authorization.

4XFX offers investors several trading assets including securities, derivatives, Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, precious metals, and other commodities and shares.

A brief review of the broker’s website reveals that it lists its head-office address in Estonia, and in the ‘Contact Us’ section it refers to ‎other global contacts. ‎ However, we didn’t find any records of the broker to be regulated by the local Estonian Financial Supervisory Authority or any other regulator.

This is not the first time that 4XFX has sparked regulatory concerns. Earlier in January, Australia’s financial watchdog ASIC red-flagged the multi-asset broker, which is owned and operated by GRF EUROPE OU, based in Berlin, Germany. Moreover, 4XFX was also blacklisted by Estonian and Spanish regulators.

Prohibiting the Sale of Crypto Derivatives

Earlier in February, the FCA published the findings of independent complementary research, which showed that UK consumers buying virtual coins are often looking for ways to ‘get rich quick.’ Many of those interviewed perceived crypto assets as a shortcut to easy money and wealth. The City watchdog has taken its first steps towards regulating cryptocurrencies in January as it began to answer the call for greater oversight of the growing but volatile market.

Specifically, the City regulator launched a comprehensive consultation on how it should authorize all crypto asset activities from the exchanges on which they trade, to payment companies, wallet providers and the brokers seeking to offer related derivatives.

The FCA is also weighing a potential ban on the sale of derivatives based on cryptocurrencies, in what would be its first major intervention in the nascent market. The aforementioned consultation could lead to prohibiting the sale of derivatives, including CFDs, options and futures, based on cryptocurrency prices to retail investors.