The Financial Conduct Authority (FCA) has issued a warning regarding Fortunex, a firm allegedly offering financial and crypto-related services without proper authorization.
According to the FCA, Fortunex (fortunexglobal.org) may be promoting financial services or products without the necessary authorization. The public is advised to avoid engaging with this firm and remain vigilant against potential scams. Most firms and individuals are required to be authorized or registered to provide financial services in the UK. Fortunex lacks such authorization and may be targeting UK residents. Information on other unauthorized firms can be found on the FCA’s Warning List.
UK cryptoasset businesses must register with the FCA under the Money Laundering Regulations if they intend to offer services falling 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 considers past convictions, regulatory compliance, and business conduct during evaluation. Misleading or incomplete applications may be rejected.
In a related matter, CB Payments Limited (CBPL), part of the Coinbase Group, was fined £3.5 million by the FCA 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 attributed this issue to inadequate controls that increased money laundering risks. This enforcement action marks the first under the Electronic Money Regulations 2011.
Learn Signal reports that the Financial Conduct Authority was established on April 1, 2013, succeeding the Financial Services Authority as part of a comprehensive reform of the UK's financial regulatory framework following the global financial crisis. Operating independently of the UK government, it is funded by fees charged to the financial services industry. Its primary objectives include protecting consumers, ensuring market integrity in the UK’s financial markets, and promoting effective competition in consumers' interests.