CoinBurp and Launch of $Burp Token Receives Consumer Warning from UK FCA

The UK Financial Conduct Authority (FCA) has issued a warning regarding CoinBurp and the pending issuance of the $Burp Token. CoinBurp states that it currently operates a CeFi platform, but they are developing an ETH-based DeFi wallet.

While the name alone may cause some potential investors to push pause,  the securities regulator has cautioned potential purchasers that the initial Dex Offering, apparently scheduled for this Monday, has not received regulatory approval from the FCA.

To quote the consumer warning:

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

It does not allow any firm to claim to be Registered or Authorised by the FCA. Whilst firms with this status can continue to trade, such firms and their personnel have not yet been assessed as fit and proper, and we have not yet determined their application for the purposes of the MLRs.

The FCA has very limited powers to protect you if you invest in cryptoassets. We have warned previously that investing in cryptoassets (and investments and lending products linked to them) usually involves very high risks.”

A posting on the CoinBurp website states:

“$BURP tokens are issued by Cede Fields LTD (a company incorporated in the British Virgin Islands) and distributed by Kucoin, Gate.io, and Polkastarter. $BURP tokens are not issued by CoinBurp LTD.”

A blog post by CoinBurp claims that the firm is the “UK’s most trusted DeFi platform to buy, sell, and trade cryptocurrencies, with a near-perfect score on Trustpilot.”

The FCA notes that CoinBurp does not yet hold full FCA Registration under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 but has submitted an application to the FCA for registration.

In past months, the FCA has ramped up scrutiny on digital asset offerings, along with other forms of alternative finance. Later this year, the regulator is expected to make further pronouncements on potential moves to further protect investors.

 

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