ICAP Crypto Is A Clone Firm: Warns UK Financial Watchdog

A warning has been issued by the chief financial regulator of the United Kingdom, the Financial Conduct Authority (FCA), regarding ICAP Crypto. In a public announcement dated May 24, the regulator has claimed that ICAP Crypto is a clone firm.

For those wondering what clone firms are, it is a place for scammers, where they procure information from legitimate firms and use that to convince targets that are genuine. It’s one elaborate scheme of scamming gullible people. The report states that ICAP Crypto is a clone firm of ICAP Europe Limited.

So in this particular situation, the ICAP Europe Limited’s name has been used to mislead the targets. ICAP Europe Limited is a genuine firm that is recognized and authorized by the FCA. However, this cloning firm is using the details of the former to lure in targets, when in reality it’s just a major sham.

Clone firms have become a real menace for the FCA, who have already issued warnings in the past over crypto-related clone firms, back in 2018. One of them was Fair Oaks Crypto, which attempted to confuse targets by claiming to be affiliated with Fair Oaks Capital. The other one was Good Crypto, which claimed to be associated with Arup Corporate Finance and additionally misrepresented some of the registration information of the legitimate firm as its own.

The FCA has been more open recently in accepting new projects. It accepted three blockchain businesses into its regulatory sandbox. The previous blockchain projects they have approved include:

“… digital identity solutions, platforms which tokenize issuance of financial instruments, and services aimed at facilitating greater access to financial services for vulnerable consumers.”

The FCA also recently claimed that the scams involving currency and digital assets such as Bitcoin has amounted to a whopping £27m in Britain this financial year.