UK’s Financial Conduct Authority is Investigating 67 Cryptocurrency Companies

By Rishma Banerjee

The United Kingdom has recently revealed that it has launched a total of 67 separate inquiries into cryptocurrency companies, out of which 49 have been closed and 18 are currently ongoing. Additionally, the government has confirmed that it is ready to provide more assistance to the Financial Conduct Authority (FCA) to help regulate the crypto industry.

The United Kingdom has been cracking down on cryptocurrency companies that have been stepping out of the line for quite a few months now, and as the year comes to a close, it has revealed a summary of all the progress that it has made so far.

The FCA revealed the information to The Telegraph in response to a Freedom of Information (FoI) request. The report suggests that the authorities have, as of November 12. Opened inquiries into 67 firms involved in the cryptocurrency business.

The Financial Times reported that,

    “The Financial Conduct Authority on Sunday confirmed that it was investigating 18 businesses involved in the sale of cryptocurrencies such as Bitcoin. The regulator also issued alerts and warnings about dozens of companies suspected of cryptocurrency scams.”

The FCA has closed 49 out of the 67 investigations and has issued consumer alerts for 39 firms. An alert is issued by the regulator when it suspects that the firms in question is involved in a scam and is working without authorization. The other 10 inquiries were closed for reasons including being issued warnings or a lack of evidence against the firm. However, the FCA has refused to name the companies in question as investigations are still ongoing.

The situation of cryptocurrency regulation is somewhat complicated in the UK as of now, as there has been no official document laying down the rules to regulate crypto, but companies selling digital currencies still need a prior approval from the FCA. However, the terms have been loosely defined and are open to misinterpretation.

Following a report by the Treasury Committee published in September stating that “‘Wild West’ crypto-assets should be regulated,” the government earlier this month said that it is ready to give the FCA power to oversee the cryptocurrency industry. Additionally, the FCA has expressed its interest to ban the sale of crypto derivatives in their entirety in October.

With the government of UK taking a strong and skeptical stance against this emerging industry, it is fairly open to speculation as to where the situation goes from here. But many are recommending the English to not stay optimistic about making a lot of profit from this business as of now.