The main UK regulatory body in charge of the oversight of Forex trading – the Financial Conduct Authority – has blacklisted the broker brand SafeMarkets stating that it is operating illegally in the country and providing its financial services without the proper license.
The warning issued by the FCA plainly states, “We believe this firm has been providing financial services or products in the UK without our authorisation. Find out why to be especially wary of dealing with this unauthorised firm and how to protect yourself from scammers.”
SafeMarkets purports to be owned by an Estonian company by the name Optiumcommerce OU which does not hold a license by the authorities in the UK, nor by the Finantsinspektsioon of Estonia. It appears to be some sort of cryptocurrency-related derivatives to British traders and has therefore caught the attention of the FCA.
The brokerage which operates through the website www.safemarkets.biz further appears to be connected to another fraudulent Forex broker that was also blacklisted by the FCA earlier this year. This move comes in the wake of a serious crackdown by the FCA on illegal “crypto brokers.” The financial watchdog is even considering a potential all-out ban on crypto-related derivatives which will be the first serious intervention in the underground market, a Finance Magnets report tells us.
The UK financial watchdog always advises all interested traders to only do business with legitimate and regulated Forex brokerages. It also regularly updates its warning list full of shady firms. Just last month the FCA blacklisted PrimeCrypto, Investex and eMarketsTrade, GulfFX, Easy FX Trade and TradeBNP, among others.