The U.K.’s Financial Conduct Authority has flagged cryptocurrency firm Vergo Blockchain as high risk and a potential scam, as per an official notice on Monday.
The FCA stated that Vergo Blockchain is not a registered company with the regulatory watchdog and that it may be targeting potential investors to scam them. It listed its contact details and warned that the company may change its information from time to time.
Vergo was part of the list of unauthorised firms that were a part of the 23 warning letters issued by the authority on Friday.
According to the company’s official website, Vergo Blockchain claims to offer Arbitrage and SMSF annuation services for Bitcoin.
The FCA warned that people who deal with this firm won’t have recourse to support systems such as the Financial Ombudsman Service.
“You also won’t be protected by the Financial Services Compensation Scheme (FSCS) if things go wrong. This means it’s unlikely you’d get your money back if the firm goes out of business,” read the notice.
The update comes amid an increasing number of crackdowns by cities known as cryptocurrency hubs such as Dubai, London, and South Korea.
Cryptocurrency exchanges are now facing scrutiny from regulatory authorities, including Bithumb, which received a preliminary notice of a six-month suspension in South Korea, and MEXC, which has been identified as an unlicensed exchange by VARA in Dubai and ordered to halt services.