UK FCA steps up inquiries into crypto firms

Cryptocurrencies are currently unregulated, although the UK Treasury, Bank of England and FCA have formed a cryptoassets task force to monitor the impact on the financial system

The UK Financial Conduct Authority (FCA) has doubled the number of crypto-related businesses it suspects of operating in areas of financial services without its permission, according to figures obtained by the Telegraph.

The city watchdog has conducted inquiries into 50 firms. In May this year it had looked at only 24. In addition, the regulator said it had received seven whistle-blowing reports from concerned employees of crypto businesses this year. There were none in the previous three years.

In a speech this month, the FCA’s Christopher Woolard warned: “[Consumers] may buy unsuitable products, face large losses, be exposed to fraud, struggle to access services or be exposed to the failings of providers such as exchanges.”

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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