FCA Adds Digital Gold Xchange to Warning List

Tackling a criminal inside a dystopian supermarket in the movie Cobra, Sylvester Stallone, playing a hardened policeman, tells a criminal, “you’re a disease and I’m the cure” before shooting several bullets into his chest.

The Financial Conduct Authority (FCA) plays much the same role in the battle against unregulated brokers and the scam artists who run them.

This Thursday, the English regulator added Digital Gold Xchange to its warning list of unregulated, dangerous firms.

According to the FCA, Digital Gold Xchange has been attempting to supply its ‘services’ to members of the British public.

Despite its name, Digital Gold Xchange does not supply gold. Instead, it claims to be a cryptocurrency broker.

On the FCA warning list

Like almost every single one of its brother scam firms, Digital Gold Xchange lists a fake address in Switzerland.

It also lists a fake phone number in Switzerland and a fake phone number in the UK.

Finance Magnates attempted to reach someone at the company via both phone lines, but no one answered.

Beyond the fake address, another indication that the firm is dodgy can be seen in its terms and conditions.

Traders using the company’s services can only withdraw up to $500. They can only also only withdraw once a month.

On top of those two stipulations, withdrawals can only occur with an account manager’s approval.

Given that scammers like to steal cash, not give it back to their victims, we can assume that a user’s account manager will never approve a withdrawal.

Unfortunately, firms such as Digital Gold Xchange pop up so frequently that it is difficult for regulators to keep up.

The FCA, which often issues multiple warnings per day, is limited in what it can do. Scammers hide their identity and, even if their mask can be removed, they usually operate from outside of the UK, making arrests difficult.

So unlike Sylvester Stallone in Cobra, the British regulator can’t blow away the disease with a 9mm pistol, but their warnings can serve as a preventative measure for people who may be susceptible to the conman’s trickery.