UK Financial Regulator Is Investigating 50 Illegal Crypto Companies

The United Kingdom’s Financial Conduct Authority (FCA) mentioned that it had opened over 300 cases into unregistered crypto companies in the past six months, many of which might be scams. The FCA said that 50 active investigations are a part of its efforts to crack down on all the unregistered crypto businesses.

In a March 3, 2022 announcement, the regulator said it had opened at least 300 cases on unregistered crypto companies in the past six months. Furthermore, the nation’s financial watchdog stated that it was conducting 50 active investigations, including criminal probes, into the authorized cryptocurrency businesses.

Based on the FCA, United Kingdom residents sent in up to 16,400 inquiries between April and September last year, including crypto-related scams. The regulatory body stated that it would be employing tools including “more assertive supervision and enforcement action,” and “being tougher with firms who want to operate” in the UK.

In January 2022, the financial regulator opened consultations on proposals, which consist of applying its financial promotion rules for “high-risk investments, including crypto assets.” The group is set to accept feedback until March 23.

Cryptocurrency exchanges and companies offering crypto-related services need to register with the FCA to operate for United Kingdom-based users. Reports emerged on February 23 that 32 companies had got approval as Registered Crypto Asset Service providers in the nation out of the about 200 that applied.

In 2022, the regulatory group has given crypto licenses to Uphold’s and eToro’s United Kingdom subsidiaries and Light Technology. Throughout the United Kingdom, other regulators have taken action against crypto companies, mostly associating the space with illegal transactions and many other illicit activities.

In December 2021, the nation’s Advertising Standards Authority is said to have banned advertisements from many major crypto exchanges, labeling a promotion by Coinbase’s European branch as ‘misleading’ and noting that another by Payward, Kraken operator, lacked a clear warning of possible financial risks.