UK Watchdog Issues Caveat on CoinBurp Non-Fungible Token

UK Watchdog Issues Caveat on CoinBurp Non-Fungible Token

The United Kingdom Financial Reporting Council, FCA, has issued a caveat –buyer be aware – on CoinBurp Limited, a crypto exchange platform, plan to launch non-fungible tokens after the company has raised $6 million.

In a statement, FCA said the Crypto broker CoinBurp is not fully authorised before Monday’s planned launch of its $BURP token and initial exchange offering.

“The FCA has become aware of promotional material indicating that Coinburp Limited is intending to launch the CoinBurp $BURP Token and Initial DEX Offering on Monday 26 July 2021.

“The Firm does not yet hold full FCA Registration under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended) (MLRs) but has submitted an application to the FCA for registration”, the UK Watchdog said in a statement.

But the FCA said CoinBurp could start a business under its temporary registration, provided it had the correct controls in place.

Recall, CoinBurp said last week it had raised $6 million to build a platform to buy and sell non-fungible tokens (NFTs), digital assets that are attracting interest from some investors and scrutiny from regulators worried about the risks.

“The firm does not yet hold full FCA registration under the money laundering, terrorist financing and transfer of funds (information on the payer) regulations … but has submitted an application for the FCA for registration.”

Although FCA said CoinBurp is listed on its temporary registration register, this does not allow any firm to claim to be registered or authorised.

“Whilst firms with this status can continue to trade, such firms and their personnel have not yet been assessed as fit and proper, and we have not yet determined their application for the purposes of the money laundering regulations,” the FCA said.

“Building this product means that CoinBurp – as a regulated broker – will have NFTs listed on the market and can be made available for investors in large and small quantities,” it said in a press statement on Friday.

The FCA statement is the latest in the watchdog’s warnings to consumers they could lose all their money in crypto assets.

Read Also: UK’s FCA Launches Digital Campaign Against Cryptocurrency

In June, the FCA said Binance, one of the world’s largest cryptocurrency exchanges, could not conduct any regulated activity and issued a warning to consumers about the platform, which has since come under growing regulatory scrutiny globally.

UK Watchdog Issues Caveat on CoinBurp Non-Fungible Token

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