UK Financial Regulator Launches 24 Cryptocurrency Investigations

[felixesteban]

The United Kingdom’s Financial Conduct Authority, the country’s markets watchdog and financial regulator, has confirmed that there are 24 investigations pending of cryptocurrency businesses, according to Citywire.

The FCA, in response to a Freedom of Information query, acknowledged that seven whistleblower reports were pending with regard to cryptocurrency operations thus far this year.

The regulator said it was inquiring into the operations of 24 unauthorized enterprises active in cryptocurrencies, and is attempting to assess if they are engaged in regulated activities without proper authorization.
Regulatory Action Possible

Should the FCA determine that this is the case, the agency could initiate action against them. The regulator would identify which activities pose the most risk to consumers.

John Griffith-Jones, the outgoing agency chairman, said in March that cryptocurrencies, left unregulated, would harm consumers. The agency could advise consumers on its website about certain firms, activities or individuals, and it could initiate a civil action to freeze assets and halt operations.

The agency may also initiative insolvency proceedings as well as criminal prosecutions.

Also read: UK watchdog to publish its review on cryptocurrencies later this year
FCA Clarifies Regulatory Scope

The FCA cited cryptocurrencies as a topic of growing interest for regulators and markets globally when it revealed its business plan. Certain models of cryptocurrency usage place them under the FCA’s sphere of regulatory authority, the agency stated, while at the same time acknowledged cryptocurrencies are not directly under its authority.

https://www.ccn.com/uk-financial-regulator-launches-24-cryptocurrency-investigations/

[btyco]

Some think it is bad news but really it is a good thing. Keeping the scammers away will help crypto to become more widely accepted, and it protects the newbies who might get put off by the criminals