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HomeLaw & PoliticsUK financial authority initiates a probe into 50 unlicensed cryptocurrency businesses

UK financial authority initiates a probe into 50 unlicensed cryptocurrency businesses

The Financial Conduct Authority (FCA) has started more than 300 proceedings in the previous six months, which involve unregistered crypto companies.

FCA of the UK has revealed 50 ongoing investigations as part of its attempts to clamp down on unregistered crypto firms.

According to the FCA, from April to September 2021, 16,400 UK individuals reported crypto-related frauds. The regulatory agency stated that it will use “more proactive oversight and enforcement action,” as well as “being stricter with enterprises that wish to operate” in the United Kingdom.

In January, the financial watchdog launched a survey on recommendations that included applying its financial promotion guidelines to “high-risk investments, including crypto assets.”

To operate for U.K.-based consumers, cryptocurrency exchanges and organisations offering crypto-related operations must register with the FCA. According to the source, 32 organisations had been approved as Registered Crypto Asset Service providers in the nation, out of over 200 that applied. This year, the regulatory body has given crypto licences to Uphold, eToro, and Light Technology’s U.K. businesses.

Other regulatory organisations in the United Kingdom have begun working against crypto businesses, frequently connecting the industry with unlawful transactions and other criminal activity. The country’s Advertising Standards Authority prohibited commercials from six major cryptocurrency exchanges in December, calling a campaign by Coinbase’s European office “misleading” and adding that another by Kraken operator Payward missed a suitable warning of potential financial dangers.

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