FCA warns CoinBurp over lack of authority to conduct token sale

The UK’s Financial Conduct Authority (FCA) said it has insufficient powers to allow CoinBurp to conduct an initial offering of the BURP token.

\n\n

Earlier, CoinBurp raised $6 million to build an NFT-marketplace. In investor materials, the firm described itself as a \”regulated broker\”. It also claimed that all listed non-fungible tokens on its platform were subject to sale.

\n\n

We’ve been announcing a lot of our investors lately ❤️

And we can’t thank them enough, they help to support our vision of making #crypto, #DeFi and #NFTs accessible to everyone 🤗

🟢 Meet them all today — https://t.co/YiyHJN2C0L#Crypto #cryptocurrency #DeFi

— CoinBurp (@coinburp) July 24, 2021

\n\n

The regulator stressed that CoinBurp is currently registered under a temporary regime. Such a status only allows trading of digital assets.

\n\n

«The company does not yet have full FCA registration in accordance with anti-money laundering, financing of terrorism and transfer-of-funds rules (payer information). The FCA has limited powers to protect investors in digital assets», as stated in the release.

\n\n

In a blog post, the company stated that it is \”the most trusted DeFi platform in the United Kingdom for buying, selling and trading cryptocurrencies\”.

\n\n

«BURP was issued by Cede Fields LTD, registered in the British Virgin Islands. CoinBurp has no connection to it. The tokens were listed on Kucoin, Gate.io and Polkastarter»,— as stated in the message.

\n\n

Earlier, in December 2020, the FCA introduced a regime of temporary registration for crypto firms. It was expected to last until 9 July 2021.

\n\n

In June, the regulator extended the regime until 31 March 2022, while the Authority said it was conducting a thorough assessment.

\n\n

In the same month, 64 crypto firms declined to register in the UK.

\n\n

Earlier, the agency barred Binance Markets Limited from any regulated activity in the country without prior written approval.

\n\n

Subscribe to ForkLog news on Telegram: ForkLog Feed — the full news feed, ForkLog — the most important news, infographics and opinions