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Warning about Coinburp crypto launch

Emma Lunn
Written By:
Emma Lunn

The Financial Conduct Authority (FCA) has issued a warning to consumers about Coinburp $BURP tokens which launch today.

The regulator became aware of promotional material indicating that Coinburp is intending to launch the $BURP tokens and initial DEX offering. But the firm does not yet hold full FCA registration under the Money Laundering, Terrorist Financing and Transfer of Funds regulations 2017, although it has submitted an application to the FCA for registration.

Coinburp Ltd does appear on the FCA’s Temporary Registration Register (TRR) which was established to allow existing cryptoasset businesses to continue to trade whilst the FCA assesses their application.

However, being on the temporary register doesn’t allow any firm to claim to be registered or authorised by the FCA. People running firms on this register have not yet been assessed as ‘fit and proper’ by the FCA, while the firms have not been checked to be run in accordance with money laundering regulations.

According to Bitcoin Prime, the FCA has previously warned that investing in cryptoassets, or investment products linked to them, is very high risk.

The regulator says that crypto tokens can become very difficult to sell or may significantly reduce in value – and consumers that invest in them should be prepared to lose all their money. It is unlikely that you will have recourse to the Financial Ombudsman Service or Financial Services Compensation Scheme if something goes wrong.

Last month the FCA banned the world’s biggest cryptocurrency exchange, Binance, from operating in the UK as the Binance Group didn’t any form of UK authorisation, registration or licence.