Life is not easy for Coinbase
Life is not easy when you are one of the largest cryptocurrency exchanges by volume and number of clients. Coinbase is well aware of this and has again fallen victim to a clone company with the catchy name Coinbaseie. Notably, the FCA has flagged several phone numbers.
In January, scammers in the UK posed as Admiral Markets and a few days earlier as XTB. Victims of clones also included Westpac and Hargreaves Lansdown, as well as the broker Spreadex.
Be cautious of Coinbaseie
Coinbaseie is Not Coinbase, Beware of Fraudsters. The UK financial regulator FCA recently warned British investors and savers against the activities of people who cold call consumers and posing as representatives of the popular cryptocurrency exchange Coinbase. During the conversation, they encourage setting up a trading account, referring to Coinbase’s regulations and reputation. However, as the FCA warns, they have no affiliation with the real exchange, and sending them any money may involve a serious risk of losing it.
Cloning becomes common
Clones Everywhere. Finance Magnates has repeatedly reported in recent months about fraudsters impersonating popular companies offering their services to retail investors. In November, the FCA warned against an eToro and IG Markets clone, and, in October, against a counterfeit version of the Bitpanda cryptocurrency platform.
George Osborne joins Coinbase
In order to better combat regulatory and cloning issues, Coinbase decided to hire a former UK minister who joins the broker’s advisory council in connection with its global expansion. George Osborne, the previous Chancellor of the Exchequer, will advise the exchange on regulatory affairs and global expansion.
Analyst comment
This news is negative for the market. The presence of clone companies posing as Coinbase and other popular companies is a significant concern for investors and could lead to a loss of trust in the cryptocurrency market. The hiring of a former UK minister may help Coinbase address regulatory and cloning issues, but the overall impact on the market is uncertain.
