The FCA said it had opened more than 300 cases on unregistered crypto companies in the past six months, “many of which may be scams.”
The UK Financial Conduct Authority, or FCA, has announced that it has 50 open investigations as part of its efforts to crack down on crypto firms operating without a license.
In an announcement on Thursday, The FCA said it had opened more than 300 cases on unregistered cryptocurrency companies in the past six months, “many of which may be scams.” Additionally, the country’s financial watchdog said it was conducting 50 active investigations (which could include criminal inquiries) into licensed crypto firms.
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According to the FCA, UK residents submitted 16,400 inquiries between April and September 2021, which included cryptocurrency-related scams. The regulator said it would employ tools including “more assertive oversight and enforcement actions” and “be tougher on companies that want to operate” in the UK.
We’re taking a more assertive approach to tackling harm in the consumer investments market, including stopping a quarter of new firms from entering the market https://t.co/luByUUCaYb
— Financial Conduct Authority (@TheFCA) March 3, 2022
in January, The body opened consultations on proposals, which included the application of its financial promotion rules for “high-risk investments, including crypto assets.” The group will accept comments until March 23.
Cryptocurrency exchanges and companies providing services related to digital assets must register with the FCA to serve UK users. Cointelegraph reported that, as of Feb. 23, 32 firms had received approval as registered crypto asset service providers in the country, out of approximately 200 that applied. This year, the regulatory group has granted cryptocurrency licenses to the British subsidiaries of Uphold and eToro, as well as Light Technology.
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In the UK, other regulatory bodies have cracked down on crypto companies, often associating the space with illicit transactions and other illegal activities. In December, the country’s Advertising Standards Authority removed ads from several major cryptocurrency exchanges, calling one promotion by Coinbase’s European arm “misleading” and noting another by Kraken operator Payward lacked a warning. about the possible financial risks of investing in crypto assets.
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