NatWest Executive Warns: The UK Is a Paradise For Crypto Scammers

David Lindberg – Chief Executive of retail banking at NatWest – warned investors to beware of dealing with digital assets in Britain. In his opinion, the market there is full of fraudsters who create fake cryptocurrency exchanges to lure users into thinking they are investing.

‘Fraud And Scams Are an Industry’

One of the top executives at the leading British bank NatWest – David Lindberg – alerted that the UK is not the best place for crypto investing. To him, the Kingdom is a “paradise for scammers,” and investors should be extra cautious. He went further, stating that he had “never seen a market worse” than the UK for scams.

Lindberg stressed that the issue might lead to devastating consequences for some individuals. He opined that the British government, the police, banks, and social media operators should join forces and combat the fraudsters:

“Fraud and scams are an industry. They’re intelligent, and they move fast, and it’s heartbreaking to see how they try to destroy lives.”

The top banker also warned that some of the bad actors create websites where people can invest in Bitcoin, Ethereum, and other cryptocurrencies, but instead, they are fake, and the money goes to the fraudsters’ pockets:

“They’re setting things up, with the look and feel of crypto exchanges, that aren’t. They’re just facades and our customers sometimes think they’re invested in crypto. And all they’re really doing is sending money to a fraudster.”

The FCA Also Warned Against Crypto Investing Risks

It is worth noting that the UK Financial Conduct Authority (FCA) recently announced its plans to launch a $15 million digital marketing campaign to warn investors of the risks associated with digital assets. The British regulator will raise the attention of mainly young UK residents within the ages of 18 to 30.

FCA’s Chief Executive – Nikhil Rathi – noted that youngsters consider investments as entertainment where they behave “less rationally and more emotionally, egged on by anonymous and unaccountable social media influencers.” He gave the GameStop craze as an example and stressed that people should be more informed when allocating their money to the market.

Moreover, the FCA intends to implement more strict rules for new crypto-related businesses. The watchdog explained that it would set up a regulatory nursery system to monitor those companies in their early stages to ensure they comply with laid down regulations. Rathi added that the UK would not tolerate any firms that are unwilling to comply with the upcoming rules.

Featured Image Courtesy of TheIndependent