The FCA is looking into 50 unlicensed crypto companies
In the last six months, the FCA said it has started investigating more than 300 cases into unlisted crypto companies, “many of which may be scams.” The Financial Conduct Authority (FCA) of the United Kingdom has announced 50 current investigations to crack down on unregistered crypto companies.
ACCORDING TO A STATEMENT RELEASED ON THURSDAY, the FCA claimed it had started more than 300 proceedings on unregistered crypto companies in the previous six months, “many of which may be frauds,” according to a statement released on Thursday. Furthermore, the country’s financial authority announced that it was pursuing 50 ongoing investigations against permitted crypto firms, which might include criminal probes.
Between April and September 2021, U.K. people sent about 16,400 inquiries to the FCA, including crypto companies-related scams. The agency said it would use methods such as “more forceful monitoring and enforcement action,” as well as “being stricter with corporations that wish to operate” in the U.K. The financial watchdog began consultations on suggestions in January, including applying its financial promotion guidelines to “high-risk investments, including crypto assets.” The group is taking proposals until March 23.
To operate for UK-based users, crypto exchanges and crypto companies providing crypto-related services must register with the FCA. According to sources, out of the roughly 200 organizations submitted, 32 had been approved as Registered Crypto Asset Service providers in the country as of February 23. Uphold, and eToro’s U.K. subsidiaries and Light Technology received crypto licenses from the regulatory body this year.
Other regulatory organizations in the United Kingdom have taken action against crypto companies, typically linking the area to illegal transactions and other illegal activity. The country’s Advertising Standards Authority prohibited commercials from six major crypto exchanges in December, calling one by Coinbase’s European branch “misleading” and another by Kraken operator Payward “insufficiently advising of potential financial hazards.”