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UK Regulators investigate 18 crypto firms for Fraud and Illegal Operations

BlockClutch Team



More than a dozen companies in the cryptocurrency industry are under analysis from UK’s financial regulator, reports the Financial Times.

According to the firm book, the Financial Conduct Authority (FCA) revealed on Sunday that 18 companies were being investigated over their participation in promoting cryptocurrencies. Additionally, warnings and alarms were sent to some other dozen or so companies over suspicion they were participating in cryptocurrency investment scams.

On the other hand, the FCA has declined to identify the companies which are in the spotlight to avoid prejudicing the continuing investigations. Additionally, this is to prevent impacting the business operations of these firms involved negatively prior to a definite conclusion was reached.

Also Read: White Hat Hackers earned $878,000 from Crypto Bug Bounties in 2018 says report

Late last month, CCN reported that the FCA had opened inquiries to 67 companies that were involved in cryptocurrency dealings. The most recent data from the FCA indicates that queries on 49 companies were shut, with 39 of these companies being slapped with customer alerts.

In addition, ten of those companies had their probes closed following the FCA failed to find enough proof required to progress the instances since the companies had received warnings telling them they had authorization so as to continue operations.

Since CCN reported last month, part of the reason behind the gain in the number of probes came following the FCA was bombarded with complaints in the wake of decreasing cryptocurrency prices that had probably exposed fraud in the industry. At the moment, the manager of the strategy and rivalry in the FCA, Christopher Woolard was quoted as stating that the financial regulator had been concerned that unsophisticated investors were sold products that were complicated and did not pass the”smell test”

We are worried that retail buyers are being marketed complicated, volatile and frequently leveraged derivatives merchandise based on trade tokens with inherent market integrity problems.

Also Read: Vitalik Buterin hits Bitcoin SV and calls it a ‘Dumpster Fire’

Crypto Crash Eased Stress on Regulators

While the recession in cryptocurrency costs has led to more complaints into the FCA and thus increased strain, UK’s Ministry of Finance officials had another take a month noting that the bearish conditions had eased stress to take radical actions.

Afterward, the financial services deputy manager in the UK Ministry of Finance, Gillian Dorner, contended that the recession in the cryptocurrency marketplace had purchased the time and this could Help in coming with constructive policies Instead of hasty conclusions:

We wish to spend some opportunity to check at this in a little more depth and also make sure we have a proportionate approach.



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