Several dozen cryptocurrency companies are on the radar of the Financial Conduct Authority. It is not a surprising number, given how the FCA has opened over 300 cases in the second half of 2021. Of course, not all of these cases pertain to criminal behavior, but it confirms there is still a lack of understanding by regulators.
The FCA Keeps Scrutinizing Crypto Firms
No one will be surprised to hear the FCA is still monitoring crypto firms rather closely. Despite the growing number of legitimate service providers, many companies will raise many questions. Probing the firms that operate on the edge between legal and shady is the right approach, even if it may hinder growth in the crypto industry.
During the second half of 2021, the FCA opened over 300 cases involving crypto firms. Today, it has over 50 live investigations, even though it remains unclear how many of these cases will yield any result or changes. This is because cryptocurrency has become a mainstream industry in 2021, and there are more complaints and inquiries regarding potential scams than ever before.
Moreover, one must consider this applies to crypto firms in the UK alone. It has proven to be a cesspool of scams and fake platforms, as it is too easy to get a company registration number in the UK. Most people see a registration number and consider the company legitimate, even if it clearly isn’t.
FCA Executive Director of Markets Sarah Pritchard adds:
“Consumers need to have confidence when making investment decisions, and the data we’ve published today shows how prevalent scams can be. Before investing, check you know who you are really dealing with, check if they are authorized by the FCA, and do your research to understand the risks that might be posed.”