The Financial Conduct Authority (FCA) has issued a warning regarding BG Wealth Sharing, also known as dsjex.net, for offering financial and crypto-related services without proper authorization. The FCA states that the firm is not authorized to offer such services in the UK and may be targeting UK consumers. It advises avoiding this firm and warns that it may provide false contact information to appear legitimate. Customers dealing with BG Wealth Sharing are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme, which means they may not recover funds if issues arise.
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, noting that they increased money laundering risks. This marks the first enforcement action under the Electronic Money Regulations 2011.
Learn Signal reports that the Financial Conduct Authority (FCA) was established on April 1, 2013, succeeding the Financial Services Authority (FSA) as part of a comprehensive reform of the UK's financial regulatory framework following the global financial crisis. Operating independently of the UK government, the FCA is funded by fees charged to the financial services industry. Its primary objectives include protecting consumers, ensuring the integrity of the UK's financial markets, and promoting effective competition in consumers' interests.