Trading Platform GMT Crypto is Claiming Fake Authorization, UK Regulator Warns
The company is using the name and the address of the FCA-registered private equity firm GMT Communications Partners in what the regulator considers an attempt at scamming investors.
The UK Financial Conduct Authority (FCA) has sounded an alarm over the virtual coin trading platform GMT Crypto. The firm is a clone company because it is using fake FCA authorization as part of its “tactics to scam people in the UK,” the regulator said on Thursday.
Per British law, almost every entity or individual offering financial services in the country needs FCA authorization or registration. GMT Crypto has neither and is manipulating investors by claiming the name, the company reference number, and the address of FCA-registered investment firm GMT Communications Partners.
The real FCA-authorized entity published a statement on its website to warn the public about the fraudulent scheme. GMT Communications Partners noted that it had never contacted investors by phone or email to make a presentation of its services or to request personal details and account information
“GMT Communications Partners LLP is aware that there has been an increase across the United Kingdom financial services industry of fraudsters using the names of legitimate authorised firms, including imitation of literature and branding,” the company said.
“You need to be aware that if you invest with a fake unauthorised company, you will lose the protection of the Financial Ombudsman Service and the Financial Services Compensation Scheme.”
At the time of writing, the website of the fake entity is still working. It offers trading in over two hundred cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Litecoin (LTC), and Zcash (ZEC). On the one hand, GMT Crypto declares that it follows the European Union Anti-Money Laundering Directive (AMLD) and conducts AML procedures including due diligence. On the other hand, the firm offers fully anonymous services and the “the lowest trading commissions.”
“Through a sophisticated blend of engineering with experience of experience, we empower thousands of marketers to access markets around the world through the use of digital currency entirely outside the traditional financial system,” the trading platform explains on its website.
GMT Crypto also claims supports from MasterCard, Visa, American Express, and Discover Card although the verification section is a static image, and not an external link to the payment processors.