The UK’s Financial Conduct Authority (FCA) has urged local investors not to invest in crypto company Digital Assets Nest as it operates without an agency license.

Digital Assets Nest offers digital asset investment services to UK corporations and individuals. Investments in this company pose significant financial risks, and the company itself may turn out to be fraudulent, FCA officials fear.

Both legal entities and individuals offering crypto-asset services to UK clients are required to obtain an FCA license to offer and promote financial services. The agency explains: if an investor/trader cooperates only with registered companies, then it is easier for officials to defend his interests if problems arise.

“If you are dealing with Digital Assets Nest, you will not be able to rely on legal protection. You won’t be included in the Financial Institutions Compensation Scheme (FSCS) if something goes wrong. It is unlikely that you will be able to get your money back if the firm goes bust,” the FCA warns.

In May, UK authorities closed the cryptocurrency company Amey Finance Academy for promoting dubious investment schemes and due to multimillion-dollar monetary losses among investors.