The Financial Conduct Authority (FCA) said consumers should beware dealing with OneCoin, which claims to offer the chance to make money through the trading and ‘mining’ of virtual currencies.

OneCoin markets itself as ‘a digital currency, based on cryptography’ and claims that because it has a finite amount of currency units (unlike money issued by governments), it is unaffected by factors such as inflation, and is not bound by a central bank.

However, the FCA said the City of London Police is currently investigating OneCoin and urges anyone who believes they have been a victim of fraud, or who may have had dealings with OneCoin, to contact Action Fraud or call 0300 123 2040.

OneCoin isn’t authorised which means that consumers who deal with it have no protection from the Financial Ombudsman Service or the Financial Services Compensation Scheme so the FCA is “concerned about the potential risks this firm poses to UK consumers.”