The UK Financial Conduct Authority, or FCA, has announced that it has 50 active investigations as part of its efforts to crack down on unregistered crypto companies.
In a statement Thursday, the Financial Conduct Authority (FCA) said it had opened more than 300 cases in the past six months against unregistered crypto companies, “many of which may be fraudulent.” In addition, the country’s financial regulator said it was conducting 50 active investigations, which may include criminal investigations, against licensed crypto companies.
According to the FCA, between April and September 2021, 16,400 inquiries were submitted by UK residents, including about cryptocurrency-related scams. The regulator said it would use tools including “stronger oversight and enforcement measures” and “tougher action against companies wishing to operate” in the UK.
In January, the FSA opened consultations on proposals that included the application of financial marketing rules for “high-risk investments, including cryptocurrencies.” The group accepts comments until March 23.
Cryptocurrency exchanges and companies that provide services related to cryptocurrencies must register with the Financial Conduct Authority (FCA) to work with users residing in the United Kingdom. Cointelegraph reports that as of Feb. 23, 32 companies have been approved as crypto service providers registered in the country, out of nearly 200 applicants. This year, the regulatory group has granted cryptocurrency licenses to the UK affiliates of Uphold and eToro, as well as Light Technology.
Related Links: Binance Paysafe Deal Worries UK FSA
Across the UK, other regulators have taken action against crypto companies, often linked to illegal transactions and other illegal activities. In December, the country’s Advertising Standards Authority banned advertising from several major cryptocurrency exchanges, calling European subsidiary Coinbase’s campaign “misleading,” noting that another firm, Kraken Payward, did not have adequate warning of potential financial risks.